Growth:Growing the Economy,Growing Businesses

Scott Hutcheson, Ph.D.Purdue Center for Regional Development

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The predominant economic development sales pitch has been

• cheap taxes• cheap land• cheap labor• cheap utilities

Average number of Indiana industrial recruitment “projects” annually with a promise of at least 100 jobs from 2007-2011

5IEDC Economic Incentives and Compliance Report for July 1, 2007 – June 30, 2011

Average number of Indiana industrial recruitment “projects” annually with a promise of at least 100 jobs from 2007-2011

6IEDC Economic Incentives and Compliance Report for July 1, 2007 – June 30, 2011

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Average number of Indiana industrial recruitment “projects” annually with a promise of at least 100 jobs from 2007-2011

7IEDC Economic Incentives and Compliance Report for July 1, 2007 – June 30, 2011

5…and Indiana’s one of the “best” in the U.S.

Niche: Existing Business Base

Stage Four: 500+ Employees

Stage Three: 100-499 Employees

Stage Two: 10-99 Employees

Stage One: 1-9 employees

Stage Four: 500+ Employees

Stage Three: 100-499 Employees

Stage Two: 10-99 Employees

Stage One: 1-9 employees

Second Stage Companies• 10-99 employees • Revenue of $750,000 to $10 million• Local owned/controlled• Privately-held businesses• Dealing with growth issues instead of

survival issues• Intent to grow

Northwest Indiana 2nd Stage Firms 2012

Lake LaPorte Porter Pulaski

Starke Jasper Newton

Northwest Indiana 2nd Stage Jobs 2012

Lake LaPorte Porter Pulaski

Starke Jasper Newton

What Do Second Stage Companies Need?

• Information• Infrastructure• Connections

Gibbons, C. (2010). Economic gardening. Economic Development Journal 9.3:5.

• Help in articulating and realigning with their core business strategy

• Market intelligence & GIS to answer important questions

• Guidance on search engine optimization and effective use of social media

• Leadership & management team • development to make sure people are • slotted right

Indiana Business Growth Network

Our Certified IBGN TeamPurdue Center for Regional DevelopmentHoosier Heartland Small Business Development CenterParrish Library of Management & EconomicsErik Deckers, co-author of No Bull-&%$# Social Media

IBGN partners with local and regional economic & business development groups to offer a business growth-focused economic development strategy to their community or region.

Some of the ways we can assist companies include:

• Identifying qualified sales leads by sorting extensive databases • Mapping geographic areas to facilitate targeted marketing efforts • Reviewing strategies related to commodity and/or niche markets • Examining social media utilization to connect with customers • Deploying search engine optimization to expose a targeted

website to more customers

Indiana Business Growth Network

$250K with of databases & analytic tools

Manufacturer of diesel-powered pumps & equipment for the construction industry12 employees$3 million in revenue annually

Strategic Questions• Do we have the right business model?• Where do we stand in comparison to our competitors?• Are we fully optimizing our website & social media?• How does the water table differ in different parts of our region?Strategic Information Provided• Detailed analysis on competitor’s market share and types of products offered• Search engine optimization recommendations including better ways for international

customers to find them• GIS analysis of water tables in target marketsStrategic Decisions Made• Repositioned bidding strategy• Added SEO to website• Revised market strategy based on water table information (different geographies require

different pump features

Results• Added 5 new positions.

Case Study #1

Provider of outsourced technology management16 employees$4 million in revenue annually

Strategic Questions• What firms are about our size but serve a national client base?• If we were to expand beyond our region what other areas make sense?• How can we better use social media?Strategic Information Provided• Identification of and information about peer firms that serve national client base• Profiles of six additional regions that seem to be a good fit for firm’s services• Recommendations for a blog-based social media strategy

Strategic Decisions Made• Retooled website• Began a blog and associated social media strategy• Began marketing to three additional regions

Results• Expanded to three additional regions• Added 1 new positions.

Case Study #2

Results

Source:http://www.growfl.com/downloads/2013-08%20GrowFL%20Performance%20Analysis%20VERSION%202%20FINAL.pdf

The IBGN Process

• Companies access IBGN through their LEDO, REDO, Chamber, etc.

• Fill out a Company Profile, sign mutual NDA• Schedule call with IBGN Team Leader (1 hour)• Schedule Call with IBGN Team (1hour)

– Identify 4-5 growth-related questions that need answered– Team does 30 hours worth of work

• Information and communication occurs on a secure website

• Company is contacted 6 months and 12 months afterward

For More Information or to Connect

Scott Hutcheson, Ph.D. Purdue Center for Regional Development

Purdue Extension

Purdue University203 Martin Jischke Drive

765-479-7704 (mobile)hutcheson@purdue.edu

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