Growing Your Cleveland Business in 2003: Taking Stock
By Andrew J. Birol, President,
Birol
Growth Consulting, Inc.
"The best of
times, the worst of times," Dickens said, and it is so true
now when doing business in Northeast Ohio. Ten years ago, I
moved here from Boston and in 1997, I started a consulting
firm that has helped some 140 companies to grow. Here are my
eight tips on how to grow your business in Cleveland:
- Come for the resources, stay for the
lifestyle. Cleveland has an incredible workforce of
moderately priced talent, is one day’s drive from half of
every American household, and offers million dollar homes
for $300,000. You can attract maturing talent to Cleveland
on the value of settling down. Labor-intensive businesses
like Progressive Insurance, MBNA Bank and the Cleveland
Clinic have thrived through good times and bad.
- Northeast Ohio is better for expanding your
market than developing it from scratch. Proven ideas,
particuarly offering cost savings, have faired quite well
here, even in recession. Yet, as a conservative, risk-averse
culture, the area does not seek new ideas from new
suppliers. Build a local presence by getting involved. Jack
Kahl of Manco Products built one of the area’s great
successes by providing Wal-Mart with duct tape!
- Business relationships and good service
create more success than superior features or larger
marketing budgets. Companies providing value through
service prevail over those focusing on innovation. So,
delight a few customers and their references and referrals
will grow your business. Big marketing splashes do not work
in Cleveland, but stealth campaigns do. ProForma Corporation
has succeeded not by developing new print and promotional
products but rather by designing a franchised sales system
built on trusted sales professionals providing the human
touch.
- To succeed, provide strong leadership,
project management, and motivational skills. The
workforce is highly responsive, but can have a "go
along-to-get-along" mindset. Risk-taking does not come
easily to middle management. When leading your new effort,
create a strong implementation plan, and push your staff to
take responsibility and risks. Lincoln Electric became one
of the country’s most respected manufacturers by creating a
piece-rate compensation system that turned every employee
into a decision maker.
- Government is ambivalent towards
entrepreneurs so bring your own motivation. Northeast
Ohio’s government is emphasizing traditional approaches to
generation-old challenges. You will have to be your own
cheerleader because the region respects employers more than
entrepreneurs. While they do not discourage entrepreneurs,
they are more reactive to their needs than proactive.
Recently the Russo Brothers began filming their next screen
hit here in Cleveland only after the new Mayor cut away
troublesome red tape.
- The action is outside of the city, but the
establishment is inside. Cleveland is a welcoming town,
but real inclusion may not be worth the years it takes.
Decide how much you need the old guard and the private clubs
for your business to succeed. The suburbs are vibrant,
growing, and open to more transient residents than is
downtown. The Northeast Ohio Association of Chambers of
Commerce (NOACC) is challenging the Greater Chamber of
Commerce for the area’s leadership.
- Cleveland is more real than virtual.
Cleveland’s legacy of steel and plastic has been a mixed
blessing as it transitions to a services and knowledge
economy. Northeast Ohio was largely unaffected by the first
Internet boom and bust but is slowly acknowledging the new
economy. When selling and using technology, find opportunity
in the fact that most here are not early adopters. A lot
more Daytimers and Franklin Planners are purchased than
wireless PDAs.
- Human and logistical resources are
plentiful, but finance sources are not. The region grew
up producing and distributing what others invented. From
cars to steel to plastic to rubber, the Northeast economy
has the people to make it and the transportation
infrastructure to deliver it to the heartland. But, bring
your financing with you. Ohio venture capitalists act more
like investment bankers, while investment bankers act like
lenders.
What kinds of businesses will do well in Cleveland?
As a 2002 winner of the Weatherhead Award as one of
Cleveland’s fastest growing businesses, I have helped many of
the area’s fastest growing entrepreneurs as well as some of
its slowest. Successful companies do well in any environment
by understanding and responding to their customer’s pain,
which, during a downturn, is in ample supply.
So how can you grow your business here in Cleveland?
Because you have a better mousetrap, know how you want to
produce it, and have enough financing to get you started until
your customers start paying you. Cleveland’s real world
attitude, "prove-it" customers and face-to-face business style
is a breath of fresh air after your flights of fantasy around
either coast. In sum, if you have a real product produced by
real people for real money that solves a real problem real
soon, the sun will shine for you in Cleveland. And, have we
got a worker, customer and distribution base ready for you to
help you make hay!