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Should the Economic Resource Council (ERC) be focused on bringing one business to Nevada County when seven businesses are closing or moving away? That was the question asked by a board member at the ERC meeting earlier this week.
This question prompted a wide-ranging discussion about the ERC's mission and its focus on business development vs. business survival. No one suggested the ERC neglect its mission to bring new business and more jobs to Nevada County, but some board members expressed concern at this critical time that the ERC should be more focused on the survival of existing business.
The ERC's mission statement is to “enhance the economic vitality of Nevada County by supporting the retention, creation and attraction of primary jobs; while retaining our unique environment.” Over time, the emphasis on retention, creation and attraction has shifted with changes in leadership, the composition of the board, and funds available.
Business attraction is an expensive, time-consuming activity with a high potential payoff. In contrast, working with existing businesses to keep them in the community, and working with local entrepreneurs to create new businesses is a less costly activity, but still time-consuming. A stronger focus on retention is what Nevada County needs right now, as California's economy continues to decline, was the prevailing view on the board.
I sensed from the discussion around the table that more than a few businesses, with a long history in Nevada County, are struggling despite strong business plans. The economic downturn has depleted their reserves, forcing them to consider more down sizing and even
closure. Multiple jobs will be lost if these businesses close or move.
Building owners who have lost half of their tenants, and the remaining tenants are asking for rent adjustments, is not a formula for survival, said one board member.
The problem is many businesses are reluctant to come forward and let the ERC and other business support agencies in the region know they are in economic trouble, and ask for help.
Sometimes it is because they do not know about the ERC's sincere effort to help local business survive and thrive. Then again, many businesses are just reluctant to make their struggle public by seeking local help.
The consensus of the board was these “at risk” businesses should speak privately with the ERC, their banker, or regional support agencies before closing their doors. It is unfortunate that many businesses wait until it is too late.
As one board member recommended, one of the first stops for a struggling business with strong business plan should be their banker, to discuss opportunities to reduce their loan commitments for at least one-two years, giving the business time to recover.
The ERC has an open door policy and is willing to listen to the challenges faced by struggling local businesses, and then introduce these struggling businesses to the resources of regional business planning, employment and financial institutions for help.
Regional resources include the Sierra Economic Development Corporation (SEDCorp) in Auburn. Its mission is to support the economic development of the rural communities, including Nevada County. The SEDCorp Web site at www.sedcorp.biz lists the services and support they can provide local businesses, including those struggling to survive.
The One-Stop Business and Career Center in Grass Valley offers a variety of services for Nevada County employers. The One Stop's goal is to help build a thriving business community, through referrals for: financing, consulting, business loans and qualified professional services.
The ERC also has a Web site at www.ncerc.org where it has installed a business toolbox.
Under the Tools Tab, click and then select the Tools for Success Tab to bring up an extensive list of resources, including Tools for Tough Times. This as excellent starting point to find additional survival resources.
The board concurred that more time should be spent discussing local economic issues and sharing information across all business sectors in the community. Another board member said that communication is a two-way path, with members having an obligation to inform businesses in their respective sectors about the sincere efforts of the ERC to help local businesses succeed.
Other activities of interest to struggling businesses include a Jobs and Business hearing being held by Assemblyman Dan Logue, on Friday, Nov. 13. from 10 a.m. to noon in the Board of Supervisors chambers. Assemblyman Logue wants to hear about the challenges facing local businesses, especially the growing state regulatory burden.
Russ Steele is a blogger at NC Media Watch http://ncwatch.typepad.com.
This question prompted a wide-ranging discussion about the ERC's mission and its focus on business development vs. business survival. No one suggested the ERC neglect its mission to bring new business and more jobs to Nevada County, but some board members expressed concern at this critical time that the ERC should be more focused on the survival of existing business.
The ERC's mission statement is to “enhance the economic vitality of Nevada County by supporting the retention, creation and attraction of primary jobs; while retaining our unique environment.” Over time, the emphasis on retention, creation and attraction has shifted with changes in leadership, the composition of the board, and funds available.
Business attraction is an expensive, time-consuming activity with a high potential payoff. In contrast, working with existing businesses to keep them in the community, and working with local entrepreneurs to create new businesses is a less costly activity, but still time-consuming. A stronger focus on retention is what Nevada County needs right now, as California's economy continues to decline, was the prevailing view on the board.
I sensed from the discussion around the table that more than a few businesses, with a long history in Nevada County, are struggling despite strong business plans. The economic downturn has depleted their reserves, forcing them to consider more down sizing and even
closure. Multiple jobs will be lost if these businesses close or move.
Building owners who have lost half of their tenants, and the remaining tenants are asking for rent adjustments, is not a formula for survival, said one board member.
The problem is many businesses are reluctant to come forward and let the ERC and other business support agencies in the region know they are in economic trouble, and ask for help.
Sometimes it is because they do not know about the ERC's sincere effort to help local business survive and thrive. Then again, many businesses are just reluctant to make their struggle public by seeking local help.
The consensus of the board was these “at risk” businesses should speak privately with the ERC, their banker, or regional support agencies before closing their doors. It is unfortunate that many businesses wait until it is too late.
As one board member recommended, one of the first stops for a struggling business with strong business plan should be their banker, to discuss opportunities to reduce their loan commitments for at least one-two years, giving the business time to recover.
The ERC has an open door policy and is willing to listen to the challenges faced by struggling local businesses, and then introduce these struggling businesses to the resources of regional business planning, employment and financial institutions for help.
Regional resources include the Sierra Economic Development Corporation (SEDCorp) in Auburn. Its mission is to support the economic development of the rural communities, including Nevada County. The SEDCorp Web site at www.sedcorp.biz lists the services and support they can provide local businesses, including those struggling to survive.
The One-Stop Business and Career Center in Grass Valley offers a variety of services for Nevada County employers. The One Stop's goal is to help build a thriving business community, through referrals for: financing, consulting, business loans and qualified professional services.
The ERC also has a Web site at www.ncerc.org where it has installed a business toolbox.
Under the Tools Tab, click and then select the Tools for Success Tab to bring up an extensive list of resources, including Tools for Tough Times. This as excellent starting point to find additional survival resources.
The board concurred that more time should be spent discussing local economic issues and sharing information across all business sectors in the community. Another board member said that communication is a two-way path, with members having an obligation to inform businesses in their respective sectors about the sincere efforts of the ERC to help local businesses succeed.
Other activities of interest to struggling businesses include a Jobs and Business hearing being held by Assemblyman Dan Logue, on Friday, Nov. 13. from 10 a.m. to noon in the Board of Supervisors chambers. Assemblyman Logue wants to hear about the challenges facing local businesses, especially the growing state regulatory burden.
Russ Steele is a blogger at NC Media Watch http://ncwatch.typepad.com.
