EG2008 Roy Powell Practicing Eg June2008

Practicing Economic Gardening
Roy Powell

© Copyright Economic Gardeners Pty Ltd 1988 - 2007
1

Overview

Our initial economic gardening program has:
! Verified the assumptions on which it was based,
! Produced outstanding results for the participating
businesses
! Provided a positive bridge between the Council and
businesses
! Been a sensational learning process for us and them
! Allowed us to innovate the program

This is a summary of where we have been, the
refined future direction and new opportunities

2

Who Is Roy Powell?

! A grumpy old man – it has
advantages!
! Repatriated academic
! Sometime cricketer –
‘national’ representative
! Regular traveller
! Sometimes at home –
the early morning view

3

Sometime Grazier (Rancher) – with Dependants

4

Practical Economic Gardener

5

Proponent of Men’s Sheds

Visit the award-winning website: www.mensheds.com.au

6

Conductor of the Pelican Choir

7

The 2007 Port Macquarie Program

! The first such program in Australia
! An initiative of the PMH Council with Economic
Gardeners delivering the program
! Setup costs covered by Council, participating
businesses pay fees
! Combination of workshops and individual sessions to
build planning and operating capacity
! Balance between running the business, learning and
planning is the big issue
! Needs integrity and mutual respect in large amounts

8

The Businesses

! Had not accessed government programs
! Were not part of business networks
! Had never sought an independent assessment of their
business performance
! Would not access the materials and tools from the net
! Did not have written business plans
! Were “reserved” about their business
! Run on good intuition and industry knowledge
! Knew they needed help but did not know where to start
looking for that help

9

The Outcomes - Business

! Businesses exist with the potential and the will to grow
! There are businesses willing to pay for the direct cost of
the program (no drop outs)
! Networking among the businesses has developed
wholesomely
! Real partnerships have been developed among
business partners
! Businesses have the confidence and capacity for:
! Planning and achieving high business growth
! For networking, sharing and trust
! For benchmarking and peer review
! On-going learning and business improvement
10

Outcomes - General

! The program provides a practical connection between
the Council and the small business sector
! Over time, the program will build the diversity of the Port
Macquarie economy
! Selection processes can be used to nurture the key
industries identified in the development strategy
! There are small businesses with strong market niches –
distinctive products

11

Products - Medals

Medals designed and supplied by Awards and Promotional Supplies P/L

12

Products – fastening straps

Products developed and supplied by Kadmac Enterprises P/L

13

Products – Polocrosse racquets

Polocrosse racquets and other supplies from Bennett Polocrosse P/L

14

Products – stretch fabric sportswear

Australian Basketball Hockey uniform supplied to Japan

Sportswear designed and manufactured by Soft Edges P/L

15

Easyjoin Steel Fasteners

Bennett Steel

16

Safety Doors

The principle
In an emergency, the jambs can be retracted
allowing the door to open in the opposite
direction to normal operation.
Manufactured by North
East Door Frames
Paula Beauchamp

17

And there is More….

! Local bottled water taking on the majors
! Chlorine-resistant swimwear, especially for older women
! Fantastic Sydney rock oysters
! Production and distribution rights for new ‘green’
cleaning product and advanced moisture solutions
! Tomatoes and strawberries to die for!
! Pies for all seasons
! Fantastic foam
! Allergy free foods……..

18

Why Develop “Locally-owned” Businesses?

! Shape the identity of the local economy
! A focus for local entrepreneurs and the
retention and attraction of young people
! They have innovation and risk taking capacity
! “Neglected” in terms of business support
! Identify with local economy
! Strong leverage through local linkages
! Source of pride for the community

19

Types of Regional Businesses

Business category Business share of region economy
1. Global companies 5%
2. National companies 30%
3. Local companies: 65% 100%
I. Global reach 2%
II. Franchises (local) 10%
III. National reach 15%
IV. Local reach 38% 65%

The above are my estimates of the composition of the businesses in the local
economy. I expect that the share of local companies is declining and that of
national companies and franchises is rising.

20

Business and the Local Economy

Business links to the local economy
! Sales
! Cost of goods sold
! Overheads Onsite
! Corporate
! Wages paid
! Wages spent
! Profits/dividends paid
! Profits/dividends spent

Locally owned and managed businesses are the category that
can contribute to the local economy under all headings.

21

An Economic Gardening Program

! Is an approach to build business capacity
focused on businesses that are:
! High Performance: networked, globalised,
customised, fast and flexible (after Burgess)
! Well structured and planned
! Strongly linked to the local economy
! Capable of achieving high growth
! Robust and adaptable
! Involves direct business advice from
experienced business people

22

Part of Overall Development Strategy

! Economic gardening is the business
development component of an economic
development strategy including:
! Business relocation
! Developing key industries
! Building infrastructure
! Building customer care and service
! Special projects (farmers’ market)
! Promotion of the region
! Economic Gardening – helping small
businesses to look and operate like large
businesses
23

The Objectives

! To support the growth of small, local businesses in the
region.
! To operate economic gardening programs to fill the
‘gap’ in business support for regional businesses
identified by Keniry.
! The group approach keeps costs low and builds
networks of businesses that share common values.
! To grow the businesses and the economy.
! To begin to diversify the industry and market structure of
the economy to reduce volatility
! To build the perception that the region is a hub for high
performance, entrepreneurial businesses.

24

How does the Program Operate?

! The main vehicle is the workshops that are “learning
and doing” sessions.
! There is homework between sessions.
! There is an increasing amount of information on the
website for reference purposes.
! Businesses have access to EG 24/7 by phone and
email for advice and discussion.
! We provide templates and tools and instructions on how
to use them.
The biggest challenge is businesses setting
aside quality time to do the work!

25

The Focus of the Program - Participants

Businesses can be categorised into various size groups:
! Just starting
quot; Established, small and owner-operator (turnover < $2m)
! Small corporates with staff (turnover > $2m)
Businesses can also be categorised in terms of their aspirations:
! Elephants (large and unresponsive management)
quot; Gazelles (entrepreneurial)
quot; Would-be gazelles
! Low aspiration

They must be serious about growing and improving
their business!

26

The Program Structure

1. A structured selection process
! To meet region development objectives
! To meet selection criteria
2. A Preliminary Program
! To introduce the program
! To establish a common starting point
! To build the network and trust
3. The Development Program
! To build the business plan
! To build a business development plan
4. A On-going Program
! To maintain the pressure on continued business improvement

27

What are the Outcomes for Participating
Businesses?

! Participants build:
! A new business operating culture
! A capacity to use more tools
! A philosophy of continuous learning
! A comprehensive business plan
! A fully documented business development plan
! Membership of a supportive network
! Pride and confidence in their business and its operations
! Strong linkages with other local businesses

28

What are the Outcomes for Other Businesses?

! Flow-on/linkage effects
! Growing local businesses generates demand for other materials
and services provided by other local businesses
! All businesses benefit from building a perception that the locality
is a good place to be in business
! More diverse businesses means greater local linkages

29

What are the Outcomes for a Council?

! An enhancement to their economic development strategy and
program (one that they could not readily do themselves)
! A program to grow the local economy through key business growth
and maximisation of linkage effects
! Begin developing the diversity of the economy to reduce present
instability
! Demonstration that Council is supportive of local businesses
! Development of the perception that this is a “business friendly”
place to be
! Establishing a culture of business innovation and entrepreneurship

30

What are the Outcomes for the Community?

! A growing economy provides a growing base for
building community programs and resources
! Pride in being in a growing community that is successful
including successful businesses
! Enhanced opportunities for employment of all family
members in rewarding jobs
! Greater stability in the regional economy and community

31

The Add-On Phase

! The present focus is on businesses on the move
! Now to build the entrepreneurial and innovative cultures!
! Our businesses form the nucleus of an ‘innovative
business group’ on the move and hunting down new
opportunities
! Building entrepreneurial capacity and support.
! A business leadership group

32

EG2008 Roy Powell Practicing Eg June2008

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