How to Sell a Town
"How do you sell our town, Bayambang, to investors?" my colleague Gwyn quizzed me one day while I was in the middle of something.
I've been trying to answer the big question for years, thanks to this annual PCCI competition, but quite frankly, the question still stopped me in my tracks.
Initially, I gave my sudden inquisitor a deer-in-the-headlights response.
How indeed do I 'sell' a town? After I gathered my thoughts, I consciously put myself in the shoes of entrepreneurs and investors, and from there, several answers emerged one by one.
If I were an investor, I would ask a lot of things in particular order. ...All very commonsensical questions, focused on the bottom line: will I gain enough profit?
Location
First, is the place strategically located? Remote locations are not very interesting, unless that is the selling point.
Market Base
Is there a big market that I can tap into? Are there needs in the region or community that I can transform into an opportunity? Or can the existing market afford a 'need' that I have invented?
Here, obviously a big population is a plus (instead of a liability) because it means a large market base. Is there high foot traffic in the town's strategic areas?
But population is not enough. People need to have disposable income to be able to afford buying products and patronizing services. Do potential customers/clients/patrons have enough money to spare? Are there niche markets with disposable income to explore or exploit, such as retirees, seniors, call center or factory workers, government workers, students, and teenagers?
A particular game changer: Is there a sizeable number of OFW families? Recipients of dollar remittances?
Another crucial factor is: Are there major draws? Are there crowd-drawers like resorts and other popular tourism sites such as unique theme parks, natural wonders, historical and cultural heritage sites and pilgrimage sites? Are there established businesses and health /medical and educational institutions?
Labor Pool & Wages
Is there a labor pool available? Are the wages affordable?
Spaces
Are there available adequate spaces in the area in the first place? What about parking spaces?
Safety: Peace and Order
Is the place safe to invest in? Is there political stability? Are government policies constantly changing, depending on who's in power? Is the place a banana republic, prone to coup d'etats, militarism, civil unrest, communist infiltration, Muslim insurgency, terrorism, rebellion, separatism? How's the peace and order situation? Is the rate of crime, homelessness, and drug addiction high? Is police presence strong?
Safety: Proneness to Disaster
Is the place more prone to natural calamities, like typhoon, flood, tsunami, drought, earthquake, etc., than other places? How is its disaster risk management, mitigation, and response capability?
Basic Infrastructure & Utilities
Next: Is the basic infrastructure adequate and competent? I am talking about serviceable roads, traffic, and transport system, reliable energy source, water supply, and Internet and phone connectivity. If I want to put up a call center or factory, will there be enough skyrises or office spaces for rent?
In particular -- and this question is most crucial, is the energy source affordable? Are there any alternative and cheaper energy sources, like solar farms?
Competition
How's the business competition in the area? Is it stiff? Or is the market oversaturated? Is there a really free market, or is the market controlled by a local mafia?
Ease of Doing Business
Is it easy to put up business? I am talking about complicated bureaucratic procedures or red tape that I should hurdle.
Good Governance
Is there good governance, i.e., a reliable local government, with world-class/ISO-certified management system or transparent operation, with no graft and corruption? In terms of leadership, one crucial ingredient I noticed this: Is there a leader who truly loves his/her country, has access to resources, and in that stage of life in which he/she has already transcended his/her own needs, i.e., reaching a level of self-actualization in such a way that he/she has no longer has reason to act in self-serving ways and thus be able to really focus on public service (by advancing the common good, especially the welfare of the majority of constituents)?
Is there a fair and friendly Market Code or Investment Code in place?
Tax and Fiscal Perks
Are there tax and fiscal perks for me?
Investment Protection
Will my investment get enough protection from local and national government?
Regulatory Environment
Is there a business-friendly regulatory environment?
***
On the level of a small, personal enterprise, I would ask myself, what needs in the community can I meet using my own unique gifts/talents, capabilities, and resources?
***
Honest answers to these tough questions would be my guide in selling a town to potential investors. I would, of course, play up the positives to the hilt while downplaying the negatives if I could.
If you were the investor being courted to part with your hard-earned funds and risk it for profit, what questions would you straightaway ask?
(Many thanks to Gab for his inputs.)
"How do you sell our town, Bayambang, to investors?" my colleague Gwyn quizzed me one day while I was in the middle of something.
I've been trying to answer the big question for years, thanks to this annual PCCI competition, but quite frankly, the question still stopped me in my tracks.
Initially, I gave my sudden inquisitor a deer-in-the-headlights response.
How indeed do I 'sell' a town? After I gathered my thoughts, I consciously put myself in the shoes of entrepreneurs and investors, and from there, several answers emerged one by one.
If I were an investor, I would ask a lot of things in particular order. ...All very commonsensical questions, focused on the bottom line: will I gain enough profit?
Location
First, is the place strategically located? Remote locations are not very interesting, unless that is the selling point.
Market Base
Is there a big market that I can tap into? Are there needs in the region or community that I can transform into an opportunity? Or can the existing market afford a 'need' that I have invented?
Here, obviously a big population is a plus (instead of a liability) because it means a large market base. Is there high foot traffic in the town's strategic areas?
But population is not enough. People need to have disposable income to be able to afford buying products and patronizing services. Do potential customers/clients/patrons have enough money to spare? Are there niche markets with disposable income to explore or exploit, such as retirees, seniors, call center or factory workers, government workers, students, and teenagers?
A particular game changer: Is there a sizeable number of OFW families? Recipients of dollar remittances?
Another crucial factor is: Are there major draws? Are there crowd-drawers like resorts and other popular tourism sites such as unique theme parks, natural wonders, historical and cultural heritage sites and pilgrimage sites? Are there established businesses and health /medical and educational institutions?
Labor Pool & Wages
Is there a labor pool available? Are the wages affordable?
Spaces
Are there available adequate spaces in the area in the first place? What about parking spaces?
Safety: Peace and Order
Is the place safe to invest in? Is there political stability? Are government policies constantly changing, depending on who's in power? Is the place a banana republic, prone to coup d'etats, militarism, civil unrest, communist infiltration, Muslim insurgency, terrorism, rebellion, separatism? How's the peace and order situation? Is the rate of crime, homelessness, and drug addiction high? Is police presence strong?
Safety: Proneness to Disaster
Is the place more prone to natural calamities, like typhoon, flood, tsunami, drought, earthquake, etc., than other places? How is its disaster risk management, mitigation, and response capability?
Basic Infrastructure & Utilities
Next: Is the basic infrastructure adequate and competent? I am talking about serviceable roads, traffic, and transport system, reliable energy source, water supply, and Internet and phone connectivity. If I want to put up a call center or factory, will there be enough skyrises or office spaces for rent?
In particular -- and this question is most crucial, is the energy source affordable? Are there any alternative and cheaper energy sources, like solar farms?
Competition
How's the business competition in the area? Is it stiff? Or is the market oversaturated? Is there a really free market, or is the market controlled by a local mafia?
Ease of Doing Business
Is it easy to put up business? I am talking about complicated bureaucratic procedures or red tape that I should hurdle.
Good Governance
Is there good governance, i.e., a reliable local government, with world-class/ISO-certified management system or transparent operation, with no graft and corruption? In terms of leadership, one crucial ingredient I noticed this: Is there a leader who truly loves his/her country, has access to resources, and in that stage of life in which he/she has already transcended his/her own needs, i.e., reaching a level of self-actualization in such a way that he/she has no longer has reason to act in self-serving ways and thus be able to really focus on public service (by advancing the common good, especially the welfare of the majority of constituents)?
Is there a fair and friendly Market Code or Investment Code in place?
Tax and Fiscal Perks
Are there tax and fiscal perks for me?
Investment Protection
Will my investment get enough protection from local and national government?
Regulatory Environment
Is there a business-friendly regulatory environment?
***
On the level of a small, personal enterprise, I would ask myself, what needs in the community can I meet using my own unique gifts/talents, capabilities, and resources?
***
Honest answers to these tough questions would be my guide in selling a town to potential investors. I would, of course, play up the positives to the hilt while downplaying the negatives if I could.
If you were the investor being courted to part with your hard-earned funds and risk it for profit, what questions would you straightaway ask?
(Many thanks to Gab for his inputs.)
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