2008 Economic Gardening Gathering in Steamboat: Growing Local Economies

1. Gaining the Competitive Edge:
Meeting the Strategic Information Needs
of Small and Growing Businesses
National Economic Gardening
Conference
Steamboat Springs
Christine Hamilton-Pennell, M.L.I.S., M.A.R.
Growing Local Economies
June 14, 2008
Outline
1. Set the entrepreneurial context.
2. Identify the strategic information
entrepreneurs need to grow their
businesses.
3. Present case studies from EG
programs.
4. Identify key information tools and
resources.
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2. What is an Entrepreneur?
An entrepreneur is someone who perceives an
opportunity and creates and grows an organization
to pursue it.
“So if you ask me where outrageous
optimism comes from, my best guess is it's
the confidence that you have within you, the
imagination and determination to fulfill a
need in the marketplace. You may not know
exactly how the glass becomes crystal or
the water becomes wine, but you somehow
know you will bring everything you are to
bear on getting it done.”
--Jack Roseman, Outrageous Optimism
Entrepreneurial Activity
Roughly 10% of population globally
97.5% of firms have <20 employees
Half of U.S. non-farm real gross
domestic product
Generated 60% to 80% of the net
new jobs over the past decade
3% to 5% of small firms account
for three fourths of jobs created in
U.S.
--Global Entrepreneurship Monitor; Small
Business Administration; Economic
Development Quarterly, Feb. 2002
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3. Entrepreneurial Activity
649,700 new firms and 564,900
closures in the U.S. in 2006
Half of U.S. businesses are
home-based
More than 60% of U.S.
businesses are self-financed
55 to 64 year olds most likely to
start new businesses in the U.S.
--U.S. Census Bureau; Intuit Future of
Small Business Report: Demographic
Trends and Small Business
What Do Entrepreneurs Need?
Access to capital
Entrepreneurial culture
Basic infrastructure
Livable communities
Talented employees
Peer networks
Market, industry and competitor
information
Access to markets
Training in all aspects of
business
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4. What Do Entrepreneurs Need?
Access to capital
Entrepreneurial culture
Basic infrastructure
Livable communities
Talented employees
Peer networks
Market, industry and competitor
information
Access to markets
Training in all aspects of
business
Business Stages – Stage 1
Stage 1 (1-9 employees): In addition to
sole proprietorships, partnerships and
lifestyle businesses, this category includes
high-potential companies that are
beginning to form or are in startup mode.
In particular, this group is focused on
defining a market, developing a product or
service, obtaining capital and finding
customers.
--YourEconomy.org (Edward Lowe Foundation)
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5. Business Stages – Stage 2
Stage 2 (10-99 employees): At this phase, a
company typically has a proven product and
survival is no longer a daily concern. Instead,
growth is the theme. Capital and customers are
ongoing issues, but owners begin to focus on
tomorrow’s needs as well as today’s. The
company begins to develop infrastructure and
standardize operational systems. Leaders begin
to delegate more and wear fewer hats.
--YourEconomy.org (Edward Lowe Foundation)
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6. Delivery of EG Research Services
Three core functions in EG program
Counseling/technical assistance
Research
Administrative support
Expanded functions
E-commerce/Web marketing analysis
GIS services
Role of Business Research
Services
Strategic information provides
businesses with a competitive edge,
reduces risk, and leaves more money
available to the business
Skilled business researchers provide
reliable, timely, and actionable
information to solve specific business
problems
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7. Role of Business Research
Services
Most small business
owners don’t do their own
research
Lack of time
Lack of money
Lack of skills
Business research services
provide value-added
research directly to the
business owner
Key Questions
Information needs of entrepreneurs fall into
a few main categories:
Who are my competitors?
Who are my target customers?
What are the characteristics of my
market?
What are the trends and developments
in my industry?
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8. Key Question 1
Who are my competitors?
Who else is in my space?
What are their basic offerings (product,
service, price, market strategies, delivery
method, etc.)?
With whom could I partner?
Key Question 2
Who are my target customers?
What are their characteristics?
Do they want what I have to offer?
What will they pay for it?
In my customers’ eyes, what differentiates me
from my competitors?
Where can I get lists of potential customers to
let them know about my offerings?
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9. Key Question 3
What are the characteristics of my market?
How large is it?
Is it shrinking or growing?
What are the potential niches?
What are the channels of distribution to get
my offerings to the market?
Key Question 4
What are the trends and developments in my
industry?
What are the current trends?
What are the future forecasts?
Who are the industry leaders?
Companies
People
What are the best practices?
How is technology impacting the industry?
How do I stay up to date?
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10. EG Research Case Studies
Greeley/Weld County Airport
Overview Technologies
AquaMatrix
ChurchPartner
Open Door Capital
Connecticut Economic Gardening Group
Case Study: Greeley/Weld
County Airport
Question: how can
we identify the best
recruitment
prospects for our
industrial space?
Research on quot;very light jetquot; and quot;dronequot; planes.
RSS feeds from industry sources to stay up on trends.
Research on Colorado aviation uses
Aviation companies with government contracts
Trends in the industry
Research on global innovation in aviation
Competitive intelligence on 20 targeted Colorado
companies
Information provided by City of Greeley Economic Gardening Program
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11. Case Study: Overview Technologies -
Unmanned Aerial Vehicle (UAV)
Question: What is the market potential for this UAV?
Information about competitors,
including details about their
products and markets
Information about industries
using this technology, including
photography, hobbyists, and the
military
Information about several other
applications for UAV technology
Information provided by Wyoming Market Research Center, funded by
Wyoming Business Council
EG Case Study: Unmanned Aerial
Vehicle (UAV) Company
Property/documentation
Wildlife habitat
Search and rescue
Traffic and crowd
monitoring
City/county
zoning/planning issues
Information provided by Wyoming Market Research Center, funded by
Wyoming Business Council
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12. Case Study: AquaMatrix - Fish
Farm and Processing Center
Question: What are the market demands and industry
trends for fish products?
Trends and demographics
Regional markets along the Front Range
Most desired new product forms
Price structures
Price/volume relationships
Comprehensive analysis of this market
Larger market issues regionally and nationally
Information provided by Wyoming Market Research Center, funded by
Wyoming Business Council
Case Study: AquaMatrix - Fish
Farm and Processing Center
Produced customized report, including:
Consumer demand for fish, including
organic market
Aquaculture industry outlook
Value-added fish products
Marketing strategies
Potential regional distribution markets
Information provided by Wyoming Market Research Center, funded by
Wyoming Business Council
•12

13. Case Study: ChurchPartner
Question: How can we
maximize sales in multiple
channels?
Weekly Dodge reports on
church and school building
projects
Analysis of competitors
Web optimization report
Industry trends in school
furniture market
Trade name search
Product testing companies
Trade show opportunities Information provided by Littleton Economic Gardening
Project. Used with permission from Rick Emmelhainz,
ChurchPartner.
ChurchPartner Results
“We received pertinent information on specific
internet and catalog based competition that
included their sales history, corporate structure
and new market penetration. This information
guided us to better understand what strengths
we had over the competition and how better to
position our company in the market. As a result,
we have experienced double digit growth, even
during economic downturns.”
--Rick Emmelhainz, ChurchPartner
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14. Open Door Capital
Question: How Can We Target
Our Marketing?
Metro area high-growth
companies
Local businesses with sales of
$2 to $5 million and Paydex
scores over 30 days
Colorado companies with
government contracts
Consultants who help
businesses get government
contracts
Industry and market trends in
Information provided by Littleton Economic factoring
Gardening Project. Used with permission from
Misha Seese, Open Door Capital.
The Connecticut Economic
Gardening Group
Competitive intelligence research for high-tech
companies:
Process control software company – early warning
intelligence assessment of a major competitor
Computer hardware company – insight into a niche market
Transfusion products company – competitor product analysis
High-end display kiosks company – market analysis
Company developing software to support mfg compliance –
market and competitor assessment
Company producing radiation detection devices – competitive
products assessment
Disbursement software company – market assessment for
college campus market
Information provided by Fred Wergeles, President, CT Economic
Gardening Group, www.CT-EGG.org
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15. Recap of Small Business Needs
Basic question:
“What market space are you in, who else is
there, and how will you differentiate
yourself to reach customers?”
--Jane John, Principal Researcher, On Point Research
Recap of Small Business Needs
“We don’t know what we don’t know”
Competitors
Potential partners
Market characteristics
Price points
New product/innovation opportunities
Key industry experts, associations,
publications and trade shows
Opportunities on the Web
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16. Business Counseling/Research
Interview
What is keeping them
awake at night?
Where have they
been for help
already?
What is their core
strategy?
What information will
move them forward?
Business Research Process
Two types of information:
Published Intelligence (PubINT)
Web
Databases
Articles
Books
Technical reports
Human Intelligence (HumINT)
Customers (focus groups, surveys, interviews)
Industry experts
Competitors
Trade shows
Social networks
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17. Business Research Process
Web search: search.yahoo.com
Get overall sense of industry
Identify terminology
Search article databases and news sources
Identify industry trends and market drivers
Identify key companies and experts
Identify trade associations and events
Follow-up on PubINT and HumINT leads
Analyze results and create report
Deliver to client, interpret results, determine
next steps
Business Tools and Resources:
Article and News Databases
Subscriptions services:
Business & Company Resource Center (library)
Ebsco Business Source Premier (library)
ProQuest ABI/INFORM (library, JJ Hill)
High Beam (low-cost subscription)
JJ Hill (low-cost subscription)
Factiva (transactional pricing)
Dialog
Nexis
Free resources:
BizJournals
Yahoo and Google news
•17

18. Business Tools and Resources:
Company & Competitor Information
Subscription databases
Business & Company Resource Center (library)
D&B Million Dollar Database (subscription, JJ Hill
Library)
Ebsco Business Source Premier (library)
Hoovers (free and subscription)
IBISWorld (subscription)
Morningstar (library)
ReferenceUSA (library or subscription)
SkyMinder (subscription/deposit account)
Business Tools and Resources—
Company and Industry Information
Free resources
Free-Research
Hoovers (limited free access)
Info Space
Manta
Thomas.net
Tradekey
U.S. Census – Economic Census
Zapdata (limited free access)
ZoomInfo
See also: “Free and Low-Cost Information Resources for Supporting Local
Entrepreneurs,” www.growinglocaleconomies.com
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19. Business Tools and Resources—
Consumer Marketing Lists
AccuLeads (residential lists)
Direct List Finder (direct mail lists)
ReferenceUSA (residential lists)
SRDS Direct List Source (direct mail lists)
State government lists (licensed
professionals)
Business Information Solutions (ESRI)
Handouts and List of URLs from this presentation
available at
www.growinglocaleconomies.com/resources
Contact Information
Christine Hamilton-Pennell, M.L.I.S, M.A.R.
Growing Local Economies
1460 S. Grant St.
Denver, CO 80210
720-394-5270
303-282-4280 (fax)
christine@growinglocaleconomies.com
http://www.linkedin.com/in/chamiltonpennell
www.growinglocaleconomies.com
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20. Want to Learn More?
Growing Local Economies offers training, consulting, and
research services to economic development, small
business, and library audiences.
Training topics include:
Supporting Local Entrepreneurs as an Economic
Development Strategy
Implementing an Economic Gardening Project
Meeting the Research Needs of Small and Growing
Businesses
The Role of Public Libraries in Economic Development.
Consulting and customized research services are available
on a per-project basis.
Contact us for more information: 720-394-5270,
christine@growinglocaleconomies.com
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