Introduction to business retention and expansion (BRE)

Our Connecting Businesses and Community Program approach is founded on three primary principles: community engagement, education, and the use of quality data gathered by volunteers. These principles, taken together, distinguish the University of Minnesota Extension’s approach from other BRE programs.

A community that chooses to participate in the Connecting Businesses and Community Program actively engages with a broad-based set of individuals (economic developers, residents, business leaders, educators, and other community stakeholders) throughout the project. This differs from other approaches, which often rely on one or two staff members, or a small group, to conduct BRE efforts.

The emphasis on community engagement is embedded throughout the process. There are many tasks and meetings along the way, yet these activities are coherently depicted in the comprehensive three-step program model shown later in this section.

When a community embarks on this BRE initiative, the most important tasks are to form a leadership team and task force. The leadership team has four to five coordinators that drive the process throughout the two to three years of the initiative. The task force is responsible for multiple aspects of the program, including providing input into program design, conducting business visits, and selecting projects for implementation.

An educational focus is infused throughout the Connecting Businesses and Community Program process. Education occurs at multiple levels during the engagement. On one level, the community is gaining insight into the needs and concerns of the business community. On another level, the community is developing critical community engagement skills and building social capital. This differs from BRE approaches where the knowledge gained from business visits is retained by only a few people or local staff. When knowledge is not diffused broadly in other BRE models, it is likely because educating the community is not an explicit goal.
 

Download: Three-step program model (PDF).
 

Timeline estimates for the three BRE phases

Download: Timeline estimate for BRE program phases (PDF)

Communities are encouraged to collect both quality data and a large quantity of data. Business visits are conducted using a standardized interview guide to collect data. The UMN Extension interview guide (PDF) has been vetted by experts in both survey design and BRE to ensure questions will capture reliable and valid data.

Random sampling techniques are usually used, at least for much of the sample, to select the businesses to be visited. The collection of quality data is critical to ensure the community is discussing and reflecting upon a valid and robust analysis of the businesses. 

Which is more important in BRE work? Developing relationships and connections with businesses or collecting quality and actionable data? Most of our former course participants would respond that both concerns are essential to success, but relationships would come first if they had to choose. We agree. Training volunteer BRE visitors to do their best in both respects is critical. 

Resources:

• Video demonstration (in above player) of what to do and not do to collect quality data and develop positive relationships with local businesses.
• A good general resource for surveying business owners.

The most important function of BRE, ultimately, is responding to the needs and concerns of local businesses. Sometimes known as red or warning flags, these are identified by the business visitors and BRE leaders after the visits are completed. These may include problems such as:

• The business moving, closing, or contracting
• Business expansions
• Complaints about public services
• Information requests
• Workforce availability or quality
• Problems with state/federal/other programs
• Other issues

It is important to respond to these issues in an organized, prioritized and confidential fashion. 

Although in many situations, the warning flags are handled by the professional economic development staff, involving the BRE visitors and task force in the process can be rewarding. It gets more people involved, which has both an educational as well as a “crowdsourcing” effect. Being involved in the analysis and possibly the response to identified issues gives the BRE volunteers a sense of agency and allows them to show their concern for the business in tangible ways.

Whether you use a group or assign this work to economic development staff, it is important to take an organized approach. The RedGreen Flag Analysis Worksheet (PDF) is an example of a framework that enables the team to move into an organized response mode for each visited business.

Note that red flags are defined as items that would have a negative impact if not resolved, whereas green flags are opportunities to help create a positive impact for the business and the community, if resolved. 

There are a few key things to consider when responding to businesses: confidentiality, prioritization and follow-up. Confidentiality is an extremely important consideration. The UMN Extension interview guide (PDF) has a couple of places that emphasize to the business that confidentiality is of the utmost importance (note pages ii and 17).

You will notice the business is asked to affirm that their information can be shared with people who need to know, or their information will only be placed in the de-identified data aggregation. If the business does not consent to releasing their data, then the only option is to have the person(s) who visited them respond to their concerns — no one else. Prioritizing, or even triaging, which items need to be responded to, when, and by whom is the job of the leader for this activity (usually the economic development professional).

Finally, ensuring that a response to the business’ concern is made is essential. Obviously, helping the business solve the issue is ideal. But that is not always possible. Regardless, the reputation and trustworthiness of the community is at stake. The business should receive a written response to their concerns, even if it is to tell them that the BRE group attempted to assist, but was not able. This is all part of showing the business person that they were heard.

Individual data review

The research review meeting begins with individuals reviewing and reflecting on a summary of data from the completed business interviews. The individuals use a SWOT (strengths, weakness, opportunities and threats) framework.

We will simulate a research review meeting here. You will now do your own individual review of the data. As you review the data, assign a role for yourself that is different than any role you now play in your community.  Here is a list of suggested roles you could assign yourself:

• Elected roles: mayor, council member, economic development administration (EDA) member
• Key staff: chamber executive, city administrator, community development director, private nonprofit executive director
• Business leader: general manager or owner of a manufacturer, downtown independent retailer, big box general manager, manager/owner of a service firm
• Education leader: K-12 superintendent, customized training director at community college, community education manager
• Residents at large: retiree, high school student, stay-at-home parent with children in K-12, faith leader, unemployed or underemployed resident, nonprofit or union leader

How would that community member react to this data, given their expertise and role in the community? Recall that SWOT stands for strengths, weakness, opportunities and threats. In this case, think of strengths and weaknesses in terms of the community itself. What are the community’s assets and strengths and what could use improvement? Think of opportunities and threats in terms of the greater world in which the community operates. 

You will now conduct your own SWOT analysis. You will review the summary data here (PDF) and fill out a SWOT analysis worksheet (PDF). Use the SWOT analysis worksheet while you examine the data. Be explicit in your notes, recording question numbers, because you’ll need this for the rest of the activity. Pointing ahead to the group discussion, we invite you to invite some other people in your organization, to do this exercise as well. 

Group review

Now that you’ve had time to examine the data yourself, it’s time to share your observations with others, (if you have others who did the exercise). In an actual Minnesota Connecting Businesses and Community project, a live discussion happens here —  to share the strengths, weaknesses, opportunities and threats you have identified.

People work in small groups and each group has the opportunity to present to the larger team. During the pandemic, we learned how to do this via Zoom and it worked as well as when we traditionally met in person. 

We hope the experience of discussing community issues with a group of experts and community members energizes you! This is often one of the most exciting phases of the BRE — seeing the data for the first time and exploring ways to move from data into implementation.  

The research review concludes with the generation of ideas for projects to implement in the community or service area. These are suggestions that participants have for how the community can address the issues identified in the session. For example, if the data reveals a shortage of workers with a particular skill, a potential project might be to arrange for a technical college, or other technical skills provider, to provide a training course to the community, sponsored by local businesses.  

Potential project ideas are suggested using a potential project worksheet. Download your potential project worksheet(s) (PDF). Please identify one or more potential project ideas.

You’re encouraged to fill out as many potential project worksheets as occur to you. In fact, research review participants are encouraged to complete multiple sheets. These become the most valuable elements for creating the research report as they are solidified into detailed or semi-detailed project ideas for the community to consider.

All ideas are welcome here, even if the idea is not fully developed. The point is to generate both obvious and not-so-obvious ideas for a comprehensive array of options for the community BRE task force to consider.

The research review meeting generates raw project ideas; typically a few dozen suggestions are provided to the BRE report writer. Another innovation learned in the pandemic is to use Google Forms or another e-survey software to collect potential project ideas virtually. This technique worked well for our report writers.

The next major task in the BRE process is to present these ideas to the community in a cohesive and understandable format. One way to convey this information is through a research report. A research report provides context and a framework for community decision-making. The research report also serves as a history and documentation of the community BRE initiative overall (see the next unit).

BRE research reports can vary significantly in length and format. Some reports are lighter, leaner documents while others go more in-depth. There is no magic formula for the length of a research report. The focus should be on the content and on conveying the necessary data and information.

The information selected for inclusion in the research report is up to the researcher producing the report. There are five primary sections that UMN Extension includes in a research report:

1. Overview and how to use this report
2. Findings
3. Overarching themes gleaned from the BRE data, along with suggestions for addressing these themes
4. Tabulated interview results (aka survey data)
5. The people and process

In addition, there are planning tools, a socio-economic profile of the community, and sometimes some specific project-related resources as well. 

An effective BRE research report provides information that inspires implementation action by the BRE participants.

Resources:

• Example of a comprehensive BRE research report(Wadena County, Minnesota, 2019)

This is the moment when it all comes together.

• The BRE leadership team and task force members. 
• The BRE results from the business interviews.
• The BRE research report.
• The expectations of a community that has heard about the BRE for several months.

Mix it all together with some decent facilitation — about 3.5 to 4 hours of time to contemplate and discuss — a little food for fuel, and you have the ingredients for moving your community into prioritized action. Action that will respond to business concerns, build credibility, and develop capacity for retaining and expanding your local businesses.

Typically, three, four, five or even six priority projects emerge as the selected projects to work on in the BRE action plan. How many are adopted depends on how many people are in the room, whether they commit to a project, and the overall energy and enthusiasm of the BRE task force. And these things are influenced by the previous successes that the group had along the way:

• How many and how committed are the volunteers.
• How many business visits were accomplished.
• What kind of warning flag issues were identified and addressed, etc.

In other words, success breeds success in BRE, just like it does in other pursuits. Having said that, even if a community moves forward with just say two priority projects, that can be a harbinger of good things to come.  

Resources:

Identifying potential project ideas in BRE reports with Brigid Tuck (above video)

• Classic retreat agenda
• Alternative retreat agenda

The program model calls for a community commencement meeting when the community pivots to the Implementation phase of the project. This is the time when the priority projects chosen in Major Task 6 are implemented in the community. A shorter BRE summary report is issued at the community meeting to inform the community and generate enthusiasm and support. Then the BRE committee members move into action. An example summary report is available below. 

Lisa Hinz, Extension leadership and civic engagement educator, shares some advice on relationship-building and other techniques for keeping the “flame” of your BRE initiative burning all the way through implementation in the below video.

Resources:

• Example of a BRE summary report (Wadena County, Minnesota, 2019)

Michael Darger, Extension’s director of business retention and expansion, shares the latest on evaluation methods to aid you in celebrating, adjusting, and continuing your BRE efforts.

Resources:

• More information about ripple effect mapping

Visitation coordinator

Useful skills: organized, works well with others

• Identify and recruit task force.
• Identify businesses to be visited.
• Coordinate practice visits and visitor training.
• Mail completed surveys to the report writer; keep copies in a secure file.

Milestone meeting coordinator

Useful skills: large meeting planning, consensus building

• Arrange (including invitations) the task force retreat.
• Arrange (including invitations) the community commencement meeting.

Business resources coordinator (aka “red/green flag” coordinator)

Useful skills: people skills, organized, persistent, familiar with state/regional/local economic development resources

• Establish contacts with local, state or federal agencies that can help local businesses.
• Prepare localized resource guide on development programs.
• Mail thank you notes and localized resource guide to businesses after the visits.
• Organize the warning flag review of surveys by the task force.
• Assign a reliable task force member or resource person to handle each immediate business concern.

Media coordinator

Useful skills: enthusiastic; people skills; familiar with social media and traditional media

• Establish contacts with the media.
• Provide copy, photos, and video to media.

Overall coordinator (sometimes serves as one of the above)

Useful skills: convening and leading a team; willing to be the spokesperson

• Coordinate/chair the leadership team.
• Inspire/motivate others to make the initiative a success.

Useful skills: people skills; understanding of the local economy.

• The task force sets the overall policies for the program throughout
• Visit businesses
• Recruits volunteer business visitors to help do the business visits
• Participate in task force meetings
• Get involved in follow-up activities based on their interests and skills
• Contribute their credibility and enthusiasm; take away knowledge and sense of accomplishment

Need at least some members of the task force who are recognized community leaders. Ideally, includes representatives from both the private and public sectors, government, business, nonprofit, and other groups so as to be a broad community enterprise.

Useful skills: willing to learn, organized, persistent

• Attend an orientation session on business visitation techniques.
• Team with a partner to visit two or more local businesses as assigned by the visitation coordinator:
  • Demonstrate the community’s appreciation to the business owner.
  • Make a good impression by carefully listening and following the interview guidelines.
  • Collect quality data to contribute to a quality research report.
• Be persistent in getting business interviews scheduled (even if it takes multiple attempts).
• Get completed surveys back to the appropriate official on a timely basis.
• Possibly get involved with the task force.

Additional volunteer visitors are crucial to the success of the Connecting Businesses and Community Program. Ideally, they include representatives from both the private and public sectors, government, business, nonprofit, and other groups so as to be a broad community enterprise.

• Business owners