We’ve been talking a lot lately about the effects of small
business and local business on the local economy as well as the impact
that it has on your local governments. There are many businesses in
Elizabethton and Carter County that get passed up every day as people
drive to Johnson City to shop because they don’t know either the
business exist or what the business offers. There are different
marketing campaigns you can do to fix this, but one easy solution is
online social media.
A consumer analytics company recently
studied the impact of grocery stores engaging customers via social media
to the amount spent at the grocery store. Not surprisingly, the study
found a direct link between social media engagement and sales. The
surprising part is how much of a difference it made – 50 percent
increase in sales over time of those who were engaged Facebook fan as
opposed to those who were not!
Customers who ‘Like’ or
‘Posted’ something on the grocer’s Facebook page spent $1,000 (95
percent) more annually than those who did not. Those same engaged
customers also visited the store 2.5 times more than did non-engaged
customers, and purchased 35 percent more items than those were not
engaged on Facebook.
I understand that grocery stores are
uniquely different, but the data are overwhelming clear. Engaged
customers on your social media outlets are more likely to visit more
often, purchase more items, and ultimately spend more money at your
store and in Elizabethton.
Because of its popularity,
Facebook can easily serve as a simple website for a small business. And
best of all, it’s free! A simple page lets customers know where you’re
located, your hours, and what services or products you offer. Making a
one post a day, whether a funny picture or an upcoming sale, is all it
takes to engage your customer base.
There are also great
options to advertise your business via social media as well. Running a
promotion offering a customer 10 percent off for a positive Facebook
post or a Twitter tweet and linking it to your
Facebook page or website is a great way to let people know who you are and get free advertising for your business.
Having a small business online presence in today’s world is becoming
more and more of a requirement rather than an option. What can we do to
make small business better know in Elizabethton? Let’s talk about it!
Monday, October 27, 2014
Monday, October 20, 2014
Where do we Live and Work?
In the past, we have talked about transportation and the
importance of having a good transportation system that can get people
where they need to go in a timely and efficient manner. One of the main
reasons to have such a transportation network in our modern times is
simply to get people to and from work!
Where people live and where they work has the largest impact on transportation networks today. Cities all over the country deal with peak traffic hours, which, interestingly, is the hour just before offices open and just
after the offices close. Where people live and where people work creates what we call commute patterns. Commute patterns help planners identify where new roads need to be and what roads need to be improved. Locally, in Elizabethton and Carter County, we use data that show us the relationship between where people live and where they work.
In Elizabethton in 2011, there were just over 4,700 people over the age of 16 employed that lived in Elizabethton. 72 percent of them commuted to work outside of Elizabethton while the remaining 28 percent actually worked in Elizabethton.
In addition to those who lived and worked in Elizabethton, an additional 8,000 people commuted to Elizabethton daily to work. To put this into a little perspective, twice as many people commuted to Elizabethton to work than the entire workforce that lived in Elizabethton.
This information makes clear that Elizabethton is a regional employment center just like Johnson City, Kingsport, and Bristol – more people are coming here to work than leaving Elizabethton to work.
Now that we have some numbers, let’s look at where they’re coming from. Unsurprisingly, approximately 1,500 of Elizabethton residence commute to Johnson City to work. Next, is Kingsport with just over 300 and third is Bristol with 170.
Interestingly, the most people commuting to Elizabethton to work are from Johnson City! Almost 750 people commute to Elizabethton from Johnson City to work on a daily basis. Just over 230 people commute from Kingsport to Elizabethton and 227 people make the short commute from Hunter to work in Elizabethton daily.
What do you think? Now that we have this data, what do we need to do to improve our transportation systems? What more do we need to do to make Elizabethton a bigger player in the employment market for upper east Tennessee? Let’s talk about it!
Where people live and where they work has the largest impact on transportation networks today. Cities all over the country deal with peak traffic hours, which, interestingly, is the hour just before offices open and just
after the offices close. Where people live and where people work creates what we call commute patterns. Commute patterns help planners identify where new roads need to be and what roads need to be improved. Locally, in Elizabethton and Carter County, we use data that show us the relationship between where people live and where they work.
In Elizabethton in 2011, there were just over 4,700 people over the age of 16 employed that lived in Elizabethton. 72 percent of them commuted to work outside of Elizabethton while the remaining 28 percent actually worked in Elizabethton.
In addition to those who lived and worked in Elizabethton, an additional 8,000 people commuted to Elizabethton daily to work. To put this into a little perspective, twice as many people commuted to Elizabethton to work than the entire workforce that lived in Elizabethton.
This information makes clear that Elizabethton is a regional employment center just like Johnson City, Kingsport, and Bristol – more people are coming here to work than leaving Elizabethton to work.
Now that we have some numbers, let’s look at where they’re coming from. Unsurprisingly, approximately 1,500 of Elizabethton residence commute to Johnson City to work. Next, is Kingsport with just over 300 and third is Bristol with 170.
Interestingly, the most people commuting to Elizabethton to work are from Johnson City! Almost 750 people commute to Elizabethton from Johnson City to work on a daily basis. Just over 230 people commute from Kingsport to Elizabethton and 227 people make the short commute from Hunter to work in Elizabethton daily.
What do you think? Now that we have this data, what do we need to do to improve our transportation systems? What more do we need to do to make Elizabethton a bigger player in the employment market for upper east Tennessee? Let’s talk about it!
Monday, October 13, 2014
The Power of Local and Small Businesses on the Economy
If you are a regular reader of the Elizabethton Star then I’m
sure you’ve recently been reading about our efforts to recruit new
retail businesses to Elizabethton. As I’ve mentioned before, the
benefits of shopping at Elizabethton retailers is key in making
Elizabethton a better place to live.
The taxes on the products you buy in Elizabethton go directly back into the community you live in. It provides additional revenue for us to invest more in the community through roads, parks, and better services. It also provides additional revenues for our school systems to provide even greater educational opportunities for your children and grandchildren.
Today, I want to take this conversation to the next level – the local, small business. I’m sure many of you have heard that the money you spend more locally goes directly back into the local economy to create more money. This basic concept creates what is called the multiplier effect.
The multiplier effect happens anytime you make a purchase locally in Elizabethton, but there are varying degrees at which that money creates more money and more economic activity. Buying products from a chain retailer in Elizabethton will return 13 cents for every dollar you spent back into the community. However, buying products from a small business retailer in Elizabethton will return 48 cents for every dollar spent back into the community.
A similar paradigm can be applied to restaurants. In local chain restaurants 34 cents per dollar spent will be returned back to Elizabethton while local, small business restaurants return 65 cents back to Elizabethton. These numbers may not be exact for Elizabethton, but are based on numerous studies in other communities and give us a good idea of what can be expected.
When we apply the multiplier effect to these returns to our community, they will be multiplied by 2 to 3 times creating economic benefits to Elizabethton and Carter County! When we think of the impact that simply shopping local and at small businesses can do this is quite significant!
As we continue to grow our retail base in Elizabethton we strive to recruit new retail business as well as help new retail businesses start up. The real question becomes, what can we do to encourage shopping and patronizing our local, small businesses? Let’s talk about it!
The taxes on the products you buy in Elizabethton go directly back into the community you live in. It provides additional revenue for us to invest more in the community through roads, parks, and better services. It also provides additional revenues for our school systems to provide even greater educational opportunities for your children and grandchildren.
Today, I want to take this conversation to the next level – the local, small business. I’m sure many of you have heard that the money you spend more locally goes directly back into the local economy to create more money. This basic concept creates what is called the multiplier effect.
The multiplier effect happens anytime you make a purchase locally in Elizabethton, but there are varying degrees at which that money creates more money and more economic activity. Buying products from a chain retailer in Elizabethton will return 13 cents for every dollar you spent back into the community. However, buying products from a small business retailer in Elizabethton will return 48 cents for every dollar spent back into the community.
A similar paradigm can be applied to restaurants. In local chain restaurants 34 cents per dollar spent will be returned back to Elizabethton while local, small business restaurants return 65 cents back to Elizabethton. These numbers may not be exact for Elizabethton, but are based on numerous studies in other communities and give us a good idea of what can be expected.
When we apply the multiplier effect to these returns to our community, they will be multiplied by 2 to 3 times creating economic benefits to Elizabethton and Carter County! When we think of the impact that simply shopping local and at small businesses can do this is quite significant!
As we continue to grow our retail base in Elizabethton we strive to recruit new retail business as well as help new retail businesses start up. The real question becomes, what can we do to encourage shopping and patronizing our local, small businesses? Let’s talk about it!
Monday, October 6, 2014
City Taxes, Fines, and User Fees...It’s All the Same, Right?
I know many people I’ve talked to have a hard time understanding
how city finances work. I understand - it’s a little abnormal from
business finances. In a business, revenue or sales go into one big
bucket used to pay for the product or business. However, in local
government, there are multiple buckets
Each bucket has its own revenue and set of services it provides. Imagine four buckets in front of you; one has ‘General Fund’ written on it, another says ‘Water/Sewer Services’, another says ‘Electric Services’, and another says ‘Sanitation Services.’
Each of these buckets represents a different type of fund. The general fund bucket collects money from property taxes and sales taxes. This bucket’s job is to help support the operations of the city government.
The general fund bucket provides services like the public library, new and repaving streets and sidewalks, parks and recreation, police services, city financial management, property maintenance enforcement, fire services, city administration, and development services.
The general fund bucket also appropriates money to organizations that provide a benefit to the community, such as the Senior Citizens Center, Carter County Rescue Squad, and the Elizabethton-Carter County Animal Shelter.
Fines are issued often because of violating a city ordinance. The costs of enforcing these ordinances comes from the general fund bucket therefore fines are also collected in the general fund bucket.
The remaining buckets are what are called Enterprise Services. These services are operated similar to a business and cannot use the money in the general fund bucket to operate. Just as their name suggests, these buckets provide specific services such as water and sewer service, electric service, and garbage and solid waste collection (sanitation services). Water/sewer services, electric services, and sanitation services (or garbage collection) can only spend the user fees that their customers pay for the service - just like a business.
The user fees you pay for these services are based on the amount or type of service provided. The rate of these user fees are set based on how much it costs to provide these services, and cannot be used to pay for other services in other buckets.
I hope this has helped clear the muddy water! Next time you hear a friend or neighbor talk about their bills or taxes, take a minute to help explain how this process works to them. Let’s talk about it!
Each bucket has its own revenue and set of services it provides. Imagine four buckets in front of you; one has ‘General Fund’ written on it, another says ‘Water/Sewer Services’, another says ‘Electric Services’, and another says ‘Sanitation Services.’
Each of these buckets represents a different type of fund. The general fund bucket collects money from property taxes and sales taxes. This bucket’s job is to help support the operations of the city government.
The general fund bucket provides services like the public library, new and repaving streets and sidewalks, parks and recreation, police services, city financial management, property maintenance enforcement, fire services, city administration, and development services.
The general fund bucket also appropriates money to organizations that provide a benefit to the community, such as the Senior Citizens Center, Carter County Rescue Squad, and the Elizabethton-Carter County Animal Shelter.
Fines are issued often because of violating a city ordinance. The costs of enforcing these ordinances comes from the general fund bucket therefore fines are also collected in the general fund bucket.
The remaining buckets are what are called Enterprise Services. These services are operated similar to a business and cannot use the money in the general fund bucket to operate. Just as their name suggests, these buckets provide specific services such as water and sewer service, electric service, and garbage and solid waste collection (sanitation services). Water/sewer services, electric services, and sanitation services (or garbage collection) can only spend the user fees that their customers pay for the service - just like a business.
The user fees you pay for these services are based on the amount or type of service provided. The rate of these user fees are set based on how much it costs to provide these services, and cannot be used to pay for other services in other buckets.
I hope this has helped clear the muddy water! Next time you hear a friend or neighbor talk about their bills or taxes, take a minute to help explain how this process works to them. Let’s talk about it!
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