Five Classic Business Retention and Expansion Strategies

Did you know that between 40 and 80 percent of new jobs are created by existing businesses, rather than new ones? From an economic development standpoint, keeping an existing business thriving and expanding is better than creating a new business. That’s why so many communities are implementing a wide variety of business retention and expansion strategies that benefit local companies and entrepreneurs.

Business retention and expansion strategies – often referred to as “BR&E” – focus on creating an environment that fosters growth of stable, successful companies. Smart communities realize that businesses shouldn’t be taken for granted – if they relocate, they can leave a void in your community and have a negative impact that affects the entire economy.

Here are five business retention and expansion strategies that your business – and your community – can take advantage of:

Implement a Long-Term Goal. An action plan that encourages business retention and expansion for not only your own business, but other businesses in your community, can be a boon to your company over the long haul. But such a goal requires research, a good business marketing strategy, and, possibly the assistance of a good team of brand strategy consultants. Carving out a niche for your business in your own community can have a long-reaching impact for your own bottom line and your area’s economic health.

Join a local advisory committee. Being part of a team of local leaders tasked with implementing business retention and expansion strategies for your community can be a great way to keep tabs on the local economy. Bonus: Joining such a team is a great way to network!

Take advantage of grants. Funds to start new businesses and improve old ones are available at just about every level, from local to federal. The state of Texas, for example, has the Texas Capital Access Fund as part of its list of business retention and expansion strategies. This fund (along with many others) provides companies with access to capital, as well as expenditure assistance. In offering grant monies to local businesses, Texas helps its communities thrive in a global marketplace.

Take advantage of tax abatements. Many communities, recognizing that small business growth is one of the keys to good economic health, offer tax breaks for new business construction and expansions for existing businesses. Tax abatements are classic business retention and expansion strategies, as they encourage firms to grow (thus bringing in new business and providing greater employment). But they also encourage local entrepreneurs to start new ventures in their own communities, rather than moving to a new place.

Look into government efforts to improve sustainability. Sustainable Oregon is a state-run initiative that supports, in a variety of ways, practices that benefit local business retention and expansion, environmental stewardship, and education. Oregon state officials recognized the economic value of encouraging local businesses to grow and prosper, and so created a community resource for business owners and operators. Such sustainability initiatives are a brilliant networking opportunity for companies and communities looking for new business retention and expansion strategies.