‘leveling the playing field’ for small businesses

‘Leveling the Playing Field’ for Small Businesses

CAMEO Annual Member Meeting 2012

Michael Gurton, MarketLink Program Director,

OMEN

Today’s Topics

In-depth look at a non-profit market research program that provides customized market research to Oregon businesses

Real world example + client testimonial Overview of Grow Oregon from idea to

funded program

Overview

What we do (and how we’re different!)

Adapted framework and techniques used by Fortune 500 companies to deliver no-cost market research and analysis to Oregon small businesses

MarketLink for Micro Businesses Clients – approx. 120 per year Demographics – Low-income, rural,

women or minority owned Referral sources – MDOs, SBDCs Biz types – Alpaca farmers to Zipline

manufacturers Client contact – by phone

MarketLink for Micro Businesses continued

Engagement length – 6 to 8 hours over 2 to 3 weeks

Needs/Issues – information, access Rate – no cost to clients Funding stream – SBA, private

foundations, local governments

Overview continued

Philosophies

› “Level the playing field” › 3 C’s (customer, competition, community)› Join your community› “Coopetition” - Learn from your competition› Infused with Michael Porter’s competitive

intelligence framework

Overview continued

Expertise

› Interviewing thought leaders/experts› Competitive intelligence› Industry and trend analysis› GIS› Sales lead generation

Overview continued

Work/Strategies

› Centered around expanding client base› Target customers differently› Expand geographically› Use different sales channels

Example – Horse stables in Southern Oregon Client needs

› Clientele was only competitive equestrians (teen girls and women 40+ y.o.)

› Wanted a steady and diversified stream of clients

Example continued

Research

› Assessment of her competitors› Assessment of larger equestrian

demographic › Sensitivity to community› Developed analysis to help her pinpoint

marketing strategies

Example continued

Impact of Research

› Client performed marketing outreach that we outlined

› Client honed social media marketing› Client started getting 10 – 12 year old

demo, both boys and girls› Anecdotal – looking to hire additional staff

Program Measures

Client Demographics

› 57% female› 21% minority› 76% either HUD very low or low income› 67% first time business owners

Program Measures continued

Micro Outcome Measures

› Change in income› Business stage progression› Change in markets (new, geo. expansion)› Hiring

Client Feedback

Survey Results (n=57)

› 100% satisfaction, 97% would use again› 60% exhibited forward business stage

progression› 88% saw increase in sales› 60% increased geographic reach

Client Feedback continued

Criticisms

› We take too long› “I already knew this.”› “It’s still in my inbox.”› Survey process (“what is MarketLink?”)› Does research create jobs?› Quantity over quality of engagement

MarketLink for Second Stage Businesses Clients – 30 to 40 per year Demographics – Under 100 employees Referral sources – Econ. devel. Partners Business type – Traded-sector Client contact – In-person meetings

MarketLink for Second Stage Businesses cont.

Engagement length – 20 hours over one month +

Needs/Issues – Issues surrounding growth, lack of time/expertise

Rate – no cost Funding streams – EDA, regional econ.

development partners, state

Program Measures continued

Second Stage Outcome Measures

› Change in geographic range› Increased revenues› Increased capital expenditures› Increase in hiring› Attribute growth to MarketLink work?

How the Grow Oregon Bill was Funded The Cast of “Characters”

› Early Mover – Greater Portland, Inc. (GPI)› Experienced Hand – consulted with Growing

Local Economies› Pilot – GPI funded› Success Story – Keyscaper› Champion – Rep. Jefferson Smith and Grow

Oregon Council

Grow Oregon Timeline

Date Activity

January 2010 Ad-hoc group creates and lobbies passage of HB3644 to form Economic Gardening Task Force (EGTF) to assess continuum of services and develop recommendations to Oregon legislature.

June 2010 Oregon legislature passes HB3644

January 2011 EGTF submits HB2879 which forms Grow Oregon Council (GOC) with charge to develop statewide program

Grow Oregon Timeline continued

Date Activity

June 2011 Oregon legislature passes HB2879, state budgets $300k through “Christmas Tree Bill”

August 2011 RFP released

February 2012 Oregon SBDC Network named as sole provider

April 2012 First client served

Inside Grow Oregon Funding

› $280k awarded to OSBDCN for 18 month program

› $20K put aside by state for 3rd party eval

Leverage› ~$200K leveraged› Primarily SBA Small Business Jobs Act awards

Grow Oregon Feedback continued

Implementation

› OSBDCN created three regional hubs: Portland metro, Southern and Central Oregon

› 15 firms served at each hub + 15 from rural areas (18 month program)

› All referrals run through hubs› Client contact is in-person (rural: by webcam)› Outsource to consultants for SEO, GIS and market

research

Contact Me

Michael Gurton

› MarketLink Program Director› Oregon Microenterprise Network (OMEN)

› 503.546.9913› Michael@Oregon-MicroBiz.org› www.LinkedIn.com/in/mgurton