Creating a Business Retention Program: Steps for Small Towns

A welcoming and elegant bakery of a local business with an "Open" sign in the window, small winery town in oregon during winter

In today's challenging economic landscape, small towns face unique hurdles in maintaining a thriving local business community. With limited resources and staff, it can be daunting to implement a comprehensive business retention program. However, by focusing on practical, low-cost strategies, even the smallest communities can make significant strides in supporting their local businesses. Here's a step-by-step guide to creating an effective business retention program tailored for small towns.

1. Start Simple: Engage with Local Businesses

A friendly city official smiling and chatting with a local shop owner in front of a small-town storefront, symbolizing engagement and connection

The foundation of any successful business retention program is engagement. Begin by:

Creating a business directory: Compile a list of all local businesses, including contact information and basic details about their operations.
Conducting informal check-ins: Have city staff or volunteers make brief, friendly visits to local businesses. These don't need to be formal; simply stopping by to say hello can open lines of communication.
Hosting quarterly business breakfasts: Invite local business owners to informal gatherings where they can network and share concerns in a relaxed setting.

2. Identify At-Risk Businesses Early

Preventing business closures is easier than attracting new ones. Look for warning signs such as:

Reduced hours of operation
Decreased inventory
Delayed maintenance or repairs
Rumors of financial struggles

Create a simple "red flag" system where staff or volunteers can confidentially report these signs. This allows for early intervention and support.

3. Implement Basic Data Collection and Tracking

While complex data analysis isn't necessary, some basic tracking can provide valuable insights:

Use a simple spreadsheet: Track business names, contact information, number of employees, and dates of communication.
Record key issues: Note common concerns or challenges mentioned during interactions with business owners.
Monitor vacancies: Keep a running list of empty storefronts and their duration of vacancy.

4. Build Relationships with Business Owners

A casual coffee meeting between a city official and a business owner, with warm smiles, symbolizing relationship building

Personal connections are crucial in small towns. Foster these relationships by:

Assigning a point person: Designate one staff member or volunteer as the primary contact for business owners.
Practicing active listening: During interactions, focus on understanding the business owner's perspective and concerns.
Following up: After conversations, send a brief email or make a quick call to show you're committed to addressing their needs.

5. Connect Businesses with Existing Resources

A community bulletin board filled with flyers and resource information, with a business owner pinning up a new flyer, symbolizing connection to resources.

Often, valuable resources already exist but businesses may not be aware of them:

Create a resource guide: Compile a list of local, regional, and state resources available to businesses. This could include workforce development programs, small business development centers, or local mentorship opportunities.
Facilitate introductions: When appropriate, connect business owners directly with resource providers.
Host informational sessions: Invite resource providers to give brief presentations at business gatherings.

6. Maintain the Program with Limited Staff Time

Consistency is key, but it doesn't have to be time-consuming:

Set realistic goals: Aim for manageable targets, such as visiting 5-10 businesses per month.
Integrate into existing routines: Have staff incorporate brief business check-ins during their regular daily activities.
Leverage technology: Use scheduling tools to automate reminders for follow-ups and check-ins.
Engage volunteers: Recruit retired business owners or community leaders to assist with outreach efforts.

Conclusion

Creating an effective business retention program doesn't require a large budget or extensive staff time. By focusing on building relationships, leveraging existing resources, and maintaining consistent communication, small towns can significantly impact their local business community.

Remember, the key to success is starting small and being consistent. Even modest efforts can yield significant results over time. By implementing these strategies, you'll be well on your way to fostering a more resilient local economy.

Need help developing a more comprehensive business retention strategy tailored to your community's unique needs? Contact HSC today. Our team of experienced consultants specializes in creating customized economic development solutions for small to mid-sized Oregon communities. Let us help you take your business retention efforts to the next level.