Introduction
Why does Burntwood Business put such a strong emphasis on championing local enterprises? The answer lies in the economics of our community. In the WS7 area alone, we boast over 1,000 registered businesses. Among them are incredibly unique shops and service providers that offer something truly special, yet they often find themselves in the shadow of larger, global franchises. The reality is that when our spending extends beyond our local community, as much as 85% of our money flows out (and no, we’re not just talking about going to Lichfield!).
Financial Benefits
When a pound is spent at a local business, a significant portion of that money tends to stay within the community, contributing to what is known as the local economic multiplier effect. The exact percentage can vary based on several factors, including the nature of the business and the local economy’s structure. However, there are some general estimates:
- Local Independent Businesses: Studies have shown that for every £1 spent at a local independent business, between 50p to 70p is retained within the local economy. This retention happens through local wages, purchases made by the business from other local businesses, and the spending of employees in the local area.
- Non-Local or Large Businesses: In contrast, when the same £1 is spent at a non-local or larger chain business, only about 5p to 15p is estimated to stay in the local economy. Much of the money goes to corporate headquarters, out-of-area suppliers, or is otherwise lost to the local economic cycle.
These figures highlight the substantial impact that choosing to spend money with local businesses can have on a community. By shopping locally, residents of a community like Burntwood can significantly increase the amount of money that stays within their local economy, supporting local job creation, community services, and overall economic health. [Source – NEF Consulting]
Opportunities for Local Innovation
“Buy local” campaigns can also highlight gaps in the local market, signaling opportunities for local entrepreneurs. For instance, if a community frequently turns to big-box stores for certain products, it indicates a potential market for burntwood locals to fill that gap, potentially leading to even more local products that are more attuned to the needs and characteristics of the area. Obviously we wasn’t our local businesses to draw income from external resources too and help bolster the economy of Burntwood overall.
Economic Strategy for Staffordshire: Our Staffordshire County Council has developed an ambitious economic strategy for the region. Their plan focuses on helping existing businesses grow, establishing new businesses, equipping residents with skills for future jobs, and regenerating town centres. It aims to create conditions for more people to start and grow their businesses, address skill gaps in the county, and develop key strategic corridors like A50/A500 and A38 for business innovation and growth
[Source: Economic strategy: 2023-2030 – Staffordshire County Council]
Local Support & Donations
For residents who spend locally, its probably good to know that statistically, local businesses are more inclined to contribute to their communities through local sponsorships or donations for several key reasons:
- Community Connection: Owners of local businesses often reside in or near the community where their business is based. This personal link to the area fosters a sense of responsibility and a desire to positively impact the community’s wellbeing.
- Understanding Local Needs: As part of the community, local business owners have a better grasp of local needs and issues. They are well-placed to know where their contributions can be most effective, be it sponsoring a local football team, supporting a community event, or donating to a local charity.
- Building Local Goodwill: Local businesses heavily depend on the support of their community for survival and growth. Contributing to local causes helps them build goodwill and strengthen their relationships with customers. This goodwill isn’t just altruistic; it’s also beneficial for business, leading to increased customer loyalty and a positive community reputation.
- Long-Term Investment in the Community: For local businesses, investing in the community is an investment in their own future. A thriving, vibrant community will attract more residents and visitors, which can lead to more business opportunities.
- Limited Bureaucracy: Smaller, local businesses often face less red tape compared to larger corporations. This flexibility allows them to make quick decisions about sponsoring a local event or making a donation without the need for extensive corporate approval.
- Personal Relationships: Local business owners often have personal relationships with individuals and organisations in their community. These relationships can lead to a deeper understanding and commitment to supporting local causes.
In contrast, larger franchises and organisations based outside of the town may not have the same level of connection or commitment to a specific local area. Their charitable efforts might be more widespread or governed by corporate policies that don’t prioritise local community engagement to the same extent.
Does Shopping Locally Cost More?
Even in instances where consumers might find lower prices elsewhere, it’s crucial to remember that the percentage of money retained within the community significantly diminishes when spending outside of local businesses, as illustrated in the Local Multiplier 3 (LM3) model. While it might occasionally cost a bit more upfront, choosing to spend with a local business is an investment in the community’s future. This approach not only nurtures the local economy but also contributes to the development and prosperity of the area. By prioritising local spending, we’re actively participating in shaping a thriving, vibrant Burntwood for ourselves and future generations.
How to Start Marketing Locally
Our listings partner Let Grow, based in Burntwood gave us this advice.
Effectively marketing to a local community requires a strategy that aligns with the local culture, interests, and needs. Here are some effective methods for engaging with a local community, along with the advantages of registering with local business listing websites:
- Local SEO and Online Listings: Beyond Google My Business, enlisting your business in local directories like Burntwood Business can greatly enhance your visibility. UK-based Chamber of Commerce websites and others are beneficial. These sites often boost your search engine rankings and make it easier for local customers to find your business.
- Social Media Engagement: Leverage social media platforms to connect with the local community. Facebook, Instagram, TikTok, Mostadon and X (formerly Twitter) are excellent for engaging with local customers. Participating in local groups and community discussions can also increase your visibility. Take a leaf out of Chocolate Treasures in Heath Hayes who regularly post live events
- Local Partnerships: Forge partnerships with other local businesses for cross-promotion. This could involve joint events, shared marketing materials, or referral incentives, providing a fantastic opportunity to tap into each other’s customer bases.
- Community Involvement: Get involved in local events, charities, or sports teams. This not only raises your profile but can also build goodwill within the Burntwood community.
- Local Media: Utilise local newspapers, radio stations like Chase FM, and community magazines for advertising and press releases. These media outlets often have a dedicated local audience and can be an effective channel to reach potential customers in your area.
- Email Marketing: Gather emails from your customers to send them updates, offers, and news. This helps keep your business in their thoughts and can encourage repeat business. Just don’t do it too often or you’ll end up as a spam filter victim.
- Word-of-Mouth and Referral Programs: Motivate your existing customers to refer friends and family. Word-of-mouth recommendations are particularly influential in local communities. Get reviews, on as many platforms as possible, just remember to check them all (Burntwood.Business has a tool for this)
- Physical Presence: Be present at local markets, fairs, or set up a stall at community events. This direct interaction is highly effective in establishing relationships with potential customers.
- Local Influencers: Collaborate with local influencers or well-known community figures who can endorse your business to their followers.
- Feedback and Adaptation: Pay attention to feedback from your local customers and adjust your products, services, and marketing strategies as needed. Plan your growth, don’t stick to what worked, and continually push your business in new ways.
Registering with local business listing websites like Burntwood Business,can be extremely advantageous this is in addition to the vital resource that is Google My Business. These platforms increase your online presence, enhance your local SEO, and simplify the process for potential customers to find you. They also provide valuable backlinks to your website, which can improve your overall search engine ranking. Furthermore, many of these sites enable customers to leave reviews, which can be a potent tool for establishing trust and credibility within your community.
Need More Help?
Burntwood Business is a free and community driven project built with the sole intention of building our community and getting Burntwood on the map. Our sister company Lets Grow offers everything from Website to SEO management and Marketing tips, many of which are offered free to claimed Businesses on Burntwood Business. If you need more help then reach out to them. Lets Grow was a struggling Burntwood Business but now operates all over Europe in many exciting projects. Lets get more of our Local Businesses front and center
