Why choose a locally owned company over a large corporation?
Marten Barry, founder and president of NAI San Diego claims "As the founder of a locally owned company in San Diego, I believe that our advantage is a more personal approach to business, which is backed by our expertise of San Diego, the place we all love and call home."
Locally owned companies and the communities they're in have a mutual relationship where success is driven from supporting each other. Locally owned companies represent the heart and soul of our communities but major corporations have made it harder for local businesses to compete. The decision to hire a locally owned company reaps many benefits that positively affect businesses and their surrounding community.
The networking and community ties formed help to establish and shape a company's "community character." A company's community character, or perceived involvement in contributing to the community, is a trend in the market place that can influence consumer loyalty to a company. People appreciate a company that positively impacts the surrounding community and this effort increases a company's reputation. The importance of community reputation helps insure that local companies are providing genuine and professional services due to their success being heavily reliant on satisfied customers and referrals.
Working with a locally owned company provides a level of flexibility and efficiency that makes business transactions more productive. In large corporations, it isn't unusual to wait days, or even weeks, for information to climb up the corporate ladder. Locally owned companies have the advantage of making their own decisions and the flexibility to accommodate unique circumstances. In small local business, decisions made not only affect the client but the business as well. This creates a relationship between the business and consumer that is rarely, if ever, created when working with a large corporation. The small size makes for a more personalized experience with each customer held at a higher level of importance.
Locally owned companies relate well to all organizations with the feel of a small town business and the resources and expertise of a large one. In some instances, locally owned companies are often backed by larger organizations that offer a more secure and credible transaction. For example, NAI San Diego offers the expertise of a local company but with the resources of the global organization network, NAI Global, that it's a part of.
Issues surrounding outsourcing and other market factors are why consumers should diversify their spending. A major benefit of hiring a locally owned company is that it's putting money back into local communities. Locally owned companies nurture their relationships within the community and thus tend to spend their money locally. Contributing to the local market creates a revenue cycle that's self-sustaining and helps secure the market from external economic factors.
Local spending has the added benefit of tax revenues that directly help cities, like our very own San Diego. Research published by a local organization, Think Local San Diego, whose mission is to increase local spending, reported that if the City of Poway increased their local purchases by 10% per year, about $2,000 per person, it would generate $971,000 in direct tax revenues, which could support approximately 17 new elementary or middle school teachers.
Looking forward, a conceptual change is necessary. We need to actively plan the future with rules that will encourage values we want reflected in our communities. And each time we should do so, thinking of the future we want in our hometowns.
Submitted by Kara Keosky-Smith, an Independent Commercial Real Estate Consultant.