Town of Gawler
Council Meeting Agenda
23 May 2017
ATTACHMENTS UNDER SEPARATE COVER
Item 8.1 –
Gawler Business Development Group –
2017/18 Draft Budget and Business Plan and
Future Agreement
ATTACHMENT 1
Signed Funding Agreement between Gawler Business
Development Group and Town of Gawler
ATTACHMENT 2
Gawler Business Development Group – 2017/18 Draft
Budget & Business Plan
ATTACHMENT 3
Gawler Business Development Group Review Report
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Gawler Business Development Group Inc.
Annual
Report
2016/17
and
Business Plan
2017/18
Gawler Business Development Group Inc.
PO Box 402, Gawler, SA 5118 | www.gawler.org.au | [email protected] | ABN: 60 986 486 821
Page 11 of 45 Phone : 0488 440 588
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And BusinessGBDG Report 2016-17 and Business Plan 2017-18
INTRODUCTION
In 2016 the Gawler Business Development Group (GBDG) appointed a new Coordinator with a view to
moving the group and its services to the next level and becoming more business focussed. With this
is mind the GBDG engaged an external business specialist to conduct a review of the Group’s past and
current services to identify if the GBDG was meeting its deliverables itemised in the current agreement
between the GBDG and Town of Gawler.
A summary of the findings is included in this report along with tables showing the current and future
alignment of GBDG services to Town of Gawler Community Plan objectives.
The Gawler Business Development Group Inc. (GBDG) is an incorporated body duly constituted in
accordance with the provisions of the Associations Incorporation Act 1985. The primary objective of
the GBDG is to help our constituent business community compete in an increasingly competitive
market. GBDG is committed to improving the viability of current Gawler businesses, promoting the
economic benefits of conducting business in Gawler to potential new businesses and assisting all
current and intending business to grow through providing advisory services, marketing assistance and
education.
The GBDG is contracted under a funding agreement by the Town of Gawler to deliver services to the
business community until 30 June 2018. The listed objectives under that agreement are:
1. To establish and support a structure that assists with raising ongoing funds for the purpose of
supporting Town of Gawler business promotions and marketing
2. To promote and market the businesses within the Town of Gawler
3. To develop and adopt strategies to develop, manage, co-ordinate and fund marketing
initiatives
4. To support and encourage the economic viability of businesses generally within the Town of
Gawler
5. To represent the interests of the business community
THE PAST
In order to achieve these 5 objectives, the GBDG defined 4 key areas that address each.
The GBDG Inc. developed initiatives that focussed on projects that are beyond the scope of individual
business with the aim of improving repeat loyal customers, increasing customer numbers and
enhancing sustainability of local businesses. The GBDG’s value to its members has been defined
around the following areas:
1. Business Marketing, Promotion and Events
2. Business Relations
3. Corporate Responsibilities
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2016
The GBDG practices a continuous improvement policy and with continual review of services provided
keeps abreast of current trends and promote the benefits of innovative new ideas to its member base.
As such with the engagement of a new coordinator in April 2016, the focus of the group has been to
have a much greater emphasis on business education to ensure the viability of businesses within the
Gawler region.
The addition of business educational workshops and forums along with tailored business advice has
added value to the range of services and events offered in previous years with demonstrable data
detailing the areas of assistance.
MOVING FORWARD
GAWLER BUSINESS DEVELOPMENT GROUP REVIEW
To ensure the GBDG continues to provide valuable services to the business community of Gawler and
assist with building a stronger regional economy an external consultant was engaged to conduct a
review. The GBDG coordinator recommended the report addresses
x
x
x
The synergies between GBDG and Council
How the GBDG sees itself working with Council to grow the local economy
How the GBDG can fit in with the future plans for Gawler.
GBDG was also keen to develop strategies for moving forward and gain an understanding of the
potential assistance the GBDG may be able to provide in respect of delivering some services from and
assisting with operational components of the Business Innovation Hub. The hub is a proposed
commercially oriented, agile working space where businesses collaborate and use digital technologies
and solutions to work smarter and grow.
In addition to the above the GBDG requested that the consultant review:
x
x
x
x
The current services provided
Assess the extent to which the current services align to the objectives of Council, specifically
in relation to the Community Plan
The future capacity and capabilities of the GBDG
The alignment of the current services to the Funding Agreement.
The review found that the GBDG is operating in accordance with its Funding Agreement however it
was having very limited impact on the economic development of the Gawler region. Given the
resources that have previously been available to the group, from both a financial and personnel
perspective, it is inconceivable that such a group could have a significant impact on economic activity.
However, the GBDG now has access to a business owner’s education program, as well as full access to
a highly-credentialed business advisor, and a training platform for education of future advisors and
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has commenced implementation of specifically targeted workshops and forums. These resources
provide the GBDG with the opportunity to implement a program that can significantly increase the
profitability of businesses in the region, which will drive employment and spending growth.
The education program provides a platform for the GBDG to engage with the proposed Innovation
Hub and to more closely align itself with the overall objectives of Council as outlined in tables in the
next section.
EXCERPTS FROM THE REVIEW by P Arnfield
The Current Services Provided by GBDG
My assessment of the services provided is based on discussions had with the Caren Brougham, various
GBDG committee members and descriptions of expenditure categories outlined in current financial
budget.
I am of the view the funds being spent would do little to add to the economic viability of businesses
within the Council region, and I commend Caren Brougham in respect of her view there needs to be a
refocusing of effort.
My thoughts are supported by the lack of engagement of the vast majority of the 1,200 business in
the region.
The current budget reveals of the non-employment and administration expenditure
x
x
x
x
29% is allocated to a festival and decorations.
19% is allocated to education and support.
19% is allocated to networking events.
42% to other activities.
Employment and administration expenditure accounts for 53% of total expenditure. Given the relative
small size of the budget (total expenditure is only $225,000) the percentage of administration costs
has to be high given a full-time employee is engaged, however this necessitates a requirement for high
leverage. By that I mean that much of the work of that employee should be in support of activities
supporting business growth and profit improvement for local businesses.
Such activities are absent from the budget.
Even the services that fall within the category of business education and support such as networking
events, key note speakers, and training breakfasts are what I would consider to be low end and low
impact in respect of business growth, profitability, and business viability.
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Assess the Extent to Which Current Services Align to the Council Objectives
The objectives of Council are outlined in table 2 of the Strategic Directions Report 2014-2018, prepared by the Town of Gawler. I have reviewed the Goals, Objectives,
and Strategies outlined in the document in the following context. Ignoring any limitations in respect of funding and expertise, what strategies would it be reasonable
for a Business Development Group such as GBDG to be aligned to, and actively engage with?
GOAL 1: A Uniquely Identifiable Township
Objective: 1.2 Build a local community that is proud of Gawler
1.4 Create a vibrant and active, event filled council area
1.5 Value the role of community spirit and pride
Strategy
Extent of
Alignment
1.2.2 Develop attractive and active spaces to better
Not aligned
integrate places of play, interaction, learning,
and not
exercise, and community events
applicable
1.2.4 Encourage and promote our country- friendly
community
Well aligned
1.4.1 Develop a vibrant township which is
reinforced by its historic character and variety of
readily accessible parks, shops, services, sports,
events, and entertainment
1.4.2 Promote people orientated activities at key
town precincts
1.4.4 Strengthen the position and promotion of
Gawler as a regional centre
1.5.1 Develop and implement an Arts and Culture
Plan for Gawler which includes funding for public
artwork and support of local events
Details
Actions to Strengthen Alignment
n/a
Through the provision of networking events and breakfast
education sessions, educational and networking events, Social
Media and involvement/sponsorship/support of Community
activities
A minimum of 1 event per month
has now been implemented to
strengthen alignment
Well aligned*
Through the staging of the Annual Jazz Festival, SALA Art
Festival, promotion of events, Hero Building Fund, cross
promotion of Rotary Village Fair and Sustainable Living Festival.
Budget for the Jazz Festival has
been halved with funds being
redirected to educational
programs.
Somewhat
aligned
Through the provision of events with key note speakers, Jazz
Festival, SALA Art Festival, support of the Christmas Carols.
As per 1.2.4
Somewhat
aligned
Through engagement in out of region Industry Leaders Groups,
Radio and print media activities
Additional forums to encourage
engagement from local business
to promote the region
Well aligned*
Through the staging of the Annual Jazz Festival, SALA Arts
Festival, sponsorhip of Gawler Carols, cross promotion of
Rotary Village Fair and Sustainable Living Festival.
No additional Arts and Culture
activities planned
*I consider the Jazz festival to be an activity that should be outside the scope of a Business Development Group
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Assess the extent to which current services align to Council objectives (continued) The objectives of Council are outlined in table 2 of the Strategic Directions
Report 2014-2018, prepared by the Town of Gawler. I have reviewed the Goals, Objectives, and Strategies outlined in the document in the following context. Ignoring
any limitations in respect of funding and expertise, what strategies would it be reasonable for a Business Development Group such as GBDG to be aligned to, and
actively engage with?
GOAL 2: Sustainable Growth Management
Objective: 2.1 Physical and social infrastructure to match population growth
2.6 Local economic activity to create local job opportunities and generate increased local wealth
Strategy
Extent of
Details
Alignment
2.1.3 Support the timely provision of community facilities
Not aligned and
and services to meet community expectations
not applicable
2.6.1 Implement a digital-based business attraction and
Not aligned
retention scheme
2.6.2 Promote the opportunities created by the NBN and
Somewhat
Through collaborative promotion and information sessions for the
broadband infrastructure
aligned
nbn with Town of Gawler and Telcos
2.6.3 Investigate opportunities for tourism
2.6.4 Engage with business to promote Gawler as a
regional activity centre
2.6.5 Develop policies to encourage business to better use
the public realm
2.6.6 Take advantage of state and federal government
initiatives that create local and regional jobs
2.6.7 Promote Gawler as a regional activity centre and the
preferred home for professional service providers
2.6.8 Promote Gawler as a regional centre for education by
supporting existing service providers and encouraging
additional opportunities and facilities in Gawler
2.6.9 Develop and implement an Economic Development
Strategy
Somewhat
aligned
Through a newly developed Tourism project in collaboration with
Kiik Start and RDA Barossa.
Not aligned
Not aligned
Somewhat
aligned
Actions to Strengthen Alignment
n/a
Proposal to work collaboratively with
Council to achieve its goal
Continuation of relationship building
with stakeholders and inclusion of nbn
co and telcos in the Small Business
Expo.
Tourism Project/Branding for business
forum scheduled.
Tourism Project/Branding for business
forum scheduled.
Implement business education
Through promotion of current State and Federal Employer Incentive
Programs
Not aligned
Not aligned
Not aligned
State Government Funded Northern
Entrepreneur Growth Program
Tourism Project/Branding for business
forum scheduled.
State Government Funded Northern
Entrepreneur Growth Program, GBDG
workshops and forums and
encouraging service providers to
participate in the Small Business Expo
Collaborate with Council to develop
strategy
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Assess the extent to which current services align to Council objectives (continued) The objectives of Council are outlined in table 2 of the Strategic Directions
Report 2014-2018, prepared by the Town of Gawler. I have reviewed the Goals, Objectives, and Strategies outlined in the document in the following context. Ignoring
any limitations in respect of funding and expertise, what strategies would it be reasonable for a Business Development Group such as GBDG to be aligned to, and
actively engage with?
GOAL 5: A Strong, vibrant Community
Objective: 5.1 Support and encourage community team work
5.3 Deliver ongoing effective and efficient services, including support for regional collaboration
5.4 Create and support community partnerships that contribute to the implementation of this Plan
Strategy
Extent of
Details
Alignment
5.1.1 Work collaboratively with all sectors of the community
Somewhat
Through sponsorship and promotion of community events,
to encourage and support teamwork
aligned
working collaboratively with Town of Gawler on Fringe activities
5.1.2 Value, support and advocate on behalf of community
Not aligned
groups, organisations and volunteers
5.1.3 Encourage and facilitate opportunities for community
Not aligned
interaction, connection and collaboration
5.1.4 Foster leadership opportunities that support and
Not aligned and
develop passionate and skilled citizens and community
not applicable
leaders
5.1.5 Support the establishment of scholarships and
mentoring programs to support young future leaders
Somewhat
Through partnership with Think Gawler and newly planned projects
aligned
for 2017
5.3.1 Represent and promote the needs, interests, and
aspirations of the community
5.3.3 Develop Gawler as an internationally recognised and
accredited “smart” community
Actions to Strengthen Alignment
Continued support and engagement
Information dissemination to the
business community
Information dissemination to the
business community
n/a
State Government Funded Northern
Entrepreneur Growth Program and
encouraging participation in the Small
Business Expo by providing a “Young
Entrepreneurs” stand.
Not aligned and
not applicable
n/a
Not aligned
State Government Funded Northern
Entrepreneur Growth Program, GBDG
workshops and forums and
encouraging business community to
utilise services to be offered in the
Business Innovation Hub
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5.3.4 Develop and implement strategies to encourage and
empower the community to participate in consultation
activities as part of strategic decision making for the future
of Gawler
5.4.1 Identify areas of community expertise, experience,
capacity and interest to assist in the delivery of this
community plan
Not aligned
Information dissemination to the
business community
Not aligned
Information dissemination to the
business community
STRATEGIC REFOCUS
To facilitate a strategic direction change the GBDG has conducted a budget planning session and reallocated funds to more closely align with the anticipated
expenditure for new services and projects. The proposed budget for the 2017/18 Financial year will require a slight increase in levied funds from the allocated
levy on Commercial premises.
The GBDG will continue providing the following services:
1. Establish and support a structure that assists with raising ongoing funds for the purpose of supporting Town of Gawler business promotions and
marketing
2. Promote and market the businesses within the Town of Gawler
3. Develop and adopt strategies to develop, manage, co-ordinate and fund marketing initiatives
4. Support and encourage the economic viability of businesses generally within the Town of Gawler
5. Represent the interests of the business community
With the addition of the following:
1. Educate intending, new and established businesses whether they be home based, mobile or bricks and mortar based
2. Provide business advisory services
3. Partner with Council on specified projects to drive a strong local economy
4. Engage with home based and mobile businesses with a view to assisting growth and stability and potentially increasing employment opportunities within
the region
5. Collaborate with Council to deliver services from the Business Innovation Hub and promote the benefits of the facility to the business community
6. Seek external funding to support further educational programs, exhibitions and event that will drive increased foot traffic into the region
7. Increased collaboration and engagement of services from Regional Development Australia
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FINANCIAL COMMITMENT 2017/18 (subject to change)
Item
Amount
Estimated carry over June 30, 2017
$ 65,000.00
Business Development Levy 2017/18 2017/18 Increase (2.9%)
$167,727.00
Memberships (Voluntary)
$ 2,000.00
Business Development Levy CPI Increase (2.9%)
$
Total Funds Available
$239,591.00
4864.00
Business Plan Expenditure 2017/18
Primary Objectives
2017 Jazz Festival
$ 10,000.00
Gawler SALA Arts Trail
$ 5,000.00
Hero Building Assistance in-kind wages
$ 5,000.00
New Initiatives
New website
$ 10,000.00
B2B Networking Expo
$ 20,000.00
Education Support
Business Advisory Services
$ 10,000.00
Profit Improvement Program
$ 27,500.00
Business Fundamentals for Start Ups
$ 4,000.00
Business Fundamentals Plus
$ 4,000.00
Marketing of Programs
$ 4,000.00
Facilitators for monthly workshops/forums/training/networking
$ 5,000.00
Administration
Business Liaison & Marketing Coordinator
$ 80,000.00
Admin Support Officer
$ 12,000.00
Insurance
$ 3,800.00
Audit fee
$ 2,500.00
Postage, printing and licences
$ 5,000.00
BECA Membership
$ 1,500.00
Website/IT Maintenance
$ 6,000.00
Other
Marketing – Bunyip
$ 6,000.00
Community Grants
$ 5,000.00
Total Planned 2017/18 Cash Expenditure
$ 226,300.00
Estimated cash at June 30, 2018
$ 13,291.00
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Business Marketing, Promotions & Events
2016/17
Continual development and promotion of Gawler as a shopping/services/business friendly destination
with sustainable businesses, by methods including the on-line Gawler Business Directory on the GBDG
website, www.gawler.org.au., dissemination of information on the GBDG Facebook pages, facilitation
of the ‘Hero Building’ projects, collaborative projects with Government and non-Government bodies,
Education Clusters and Marketing Campaigns and events that supported and promoted business
development and customer attraction and retention.
Competitions were reintroduced with a different perspective, focusing on increasing the customer
base and revenue for business. All competitions now have a requirement that entry forms re only
issued to customers who meet the minimum spend criteria for aech competition and prizes are no
longer cash but are vouchers that may only be exchanged for goods or services from businesses who
participated in the competition.
The Gawler SALA Art Trail and Gawler Jazz Festival, were once again a huge success however after
the GBDG review findings, these events have been scaled back with 50% of the usually allocated funds
being reallocated to business education. Findings revealed that these events, whilst popular, do little
to increase foot traffic and revenue for the local business community. Further information on the 2016
events is provided on page 13.
The 2017 Fringe Festival Event was supported with marketing sponsorship and assistance with event
promotion.
Workshops/forums The introduction of new services in 2016/17 including monthly workshops,
forums, advisory services and educational events has increased the level of engagement by business
owners and the staff.
Business Expo – The Inaugural Small Business Expo will be held on May 17th 2017 and it is anticipated
that this will become the major event annually providing businesses with the opportunity to showcase
the products and services provided, educate the business owners with the various information
sessions, key note presentations and workshops to be held throughout the event and networking on
a large scale. This event will also provide marketing opportunities not experienced before in the
region.
One of the most difficult things for a small business owner to do is to take time away from work.
Unfortunately, many business owners skip going to events because of this factor. They fail to realise
attending expos and trade shows can be just what is needed to provide new ideas, networking and
sales opportunities and a way to learn about the latest in business practices. Expos are the perfect
opportunity to make connections and develop small business networks with like-minded people.
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Business Education Programs will commence in April 2017 with the pilot of the State Government
Funded Northern Entrepreneur Program. This program will continue in 2017/18 with funds allocated
in the GBDG Annual Budget to ensure maximum engagement for new, intending and existing
businesses. 2017/18 will see a continuation of, and expansion of, these events/services.
Business Workshops & Support Services
Support key business educational events that deliver improved business practices as per the
workshops, forums, educational programs, expos and events listed in Business Marketing, Promotion
and Events.
Educational and informative workshops/forums/events introduced by the GBDG will continue to
expand as this group builds collaborative relationships with numerous bodies including the Town of
Gawler, State and Federal Government Departments (Australian Taxation Office, The Office of the
Small Business Commission) and Local business support organisations including, RDA Barossa,
Business SA, Business Advisory and independent Mentoring Support Specialists and many others.
Business Relations
A strong emphasis in 2016/17 on professional relationships, and collaborative partnerships, effective
2-way communication with businesses, and liaison between the Town of Gawler, the local business
community and Federal, State and Local Government bodies is now providing new opportunities for
current and future businesses in the region and building the economic profile of Gawler.
GBDG now participates in 2 Industry Leaders Groups in the Northern and Barossa regions, regularly
meets/communicates with industry leaders, Local Government CEO’s, Mayors and key staff, key
commercial property owners, and key business leaders all of which contribute to developing and
strengthening key strategic partnerships that may benefit the region.
GBDG has recently applied for membership of Business Enterprise Centres Australia to enable the
group to widen its business network, provision of up to date information relevant to local business
owners on a national level and build the brand and image of the Gawler Business Community.
Corporate Responsibilities
A continual process of reviewing, developing and maintaining professional, current, relevant and
effective internal operations to encourage greater industry engagement. 2016/17 saw an independent
review of the operations and services of the GBDG and the development of a new model to move
forward in line with the goals and objectives of the Town of Gawler. GBDG has already broadened the
range of services and assistance available to businesses in the region and will continue to move
forward in this area in 2017/18 and is keen to attract funding from external funding bodies and/or
corporate partners for new events, education and services.
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Gawler On-line Business Directory www.gawler.org.au
The GBDG strongly promotes that all businesses should have a website presence and will be
presenting a series of interactive workshops commencing in April 2017 to assist businesses to build
and maintain their own websites.
The GBDG website will undergo and complete remake whilst retaining and improving the current
Gawler Business Directory, which is proven to be a very effective marketing tool, which not only
promotes individual businesses, but Gawler as a centre of commerce. GBDG believes it is essential
that all Gawler businesses have an on-line presence.
The GBDG believes as modern technology advances, so too marketing methods must keep pace. With
IT development and the increased use of smart technology to surf the net, the GBDG recognised that
it too must embrace the new technology (including Facebook) and its increasing popularity to benefit
its membership. As such the refocussing on the 2 GBDG facebook pages in 2016/17 has seen a
dramatic increase in traffic, visits and engagement.
These results have confirmed the need for GBDG to move forward with a new and improved website
incorporating several new elements.
Social Media has been a large focus in the last 12 months with some amazing results. One business
alone benefitted from GBDG sharing a post from their page and by tagging relevant groups, this
business received 7500 likes in 2 days. GBDG is now embarking on podcast interviews and video
interviews where individual businesses will have the opportunity to showcase their business free of
charge with the podcasts/videos shared on various special media forums and websites.
Event- Gawler Jazz Festival and SALA
Whilst the recent GBDG review clearly outlined that the reviewer saw the hosting of these events as
not being conducive to a revenue increase in the region, it is a widely-known fact that the more
activities and events a region hosts, the higher the number of tourists and engagement by local
residents.
The actual increases in revenue are impossible to determine however, each venue reported a higher
level of traffic during the festival. The GBDG will reduce its financial commitment to these 2 festivals
in 2017 and will work with local and external groups to assist with the management, hosting and
marketing of the events. The Board of the GBDG recognises that events help promote the town and
generate activity, though not necessarily improve revenue.
These events promote Gawler as a unique ‘strip shopping/outdoors’ destination rather than a “first
taste of the Barossa”. One of the goals of the GBDG is to assist Gawler to be known as a destination
and not merely an entry point to another region by emphasising its attributes and points of distinction,
particularly its ambiance, history and abundant heritage and relaxed cosmopolitan feel.
The next Gawler Jazz Festival on 4th & 5th November 2017.
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The South Australian Living Artists (SALA) Festival http://www.salainc.com.au is an annual SA event,
since 1998. As the main venue for hosting the event is not available this year, the GBDG is in
discussions with artists to host the event at a local gallery with the support of the GBDG.
EVENTS HELD 2016/17
EVENT
HOST
GBDG/RDA
GBDG/ATO
GBDG
# OF
BUSINESSES
95
26
125
400+
22
23
40
Business Breakfasts x 3
Tax Essentials Workshop x 1
SALA Launch Night
Trail Visits
China Forum x 1
Small Business Record Keeping x 1
Facebook for Business Workshop x
2
Marketing Workshop x 1
Make Christmas Count Workshop x
1
Safety for Your Business Workshop
x1
Facebook Insights Workshop
NBN
Christmas Networking
Commercial Leasing Workshop x 1
GBDG/RDA
GBDG/ATO
GBDG
GBDG
12
6
GBDG
5
GBDG
GBDG/nbn
GBDG
GBDG
21
13
35
5
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Hero Building
The GBDG recognises the need for Gawler to improve its street appeal, occupancy rates and consumer
confidence. The GBDG initially embarked on the Gawler Bakery Hero Building Project (165 Murray
St.), in collaboration with the commercial property owners and Council in 2013-14. Since the completion
of the façade restoration of the Gawler Bakery, the GBDG has commenced a second project in 201415, at 50-56 Murray St. (Cups ‘n Cakes & OPSM) Gawler, in partnership with the property owner and
Council.
The GBDG has facilitated liaison between owners, builders and Council, effectively project managing
the progress of the Gawler Bakery (2013-14) and OPSM & Cups ‘n Cakes (2014-15). In partnership
with Council, the GBDG hopes to continue to facilitate and support the ‘Hero Building’ Project so that
Gawler CBD will have improved street appeal and property owners encouraged to preserve their historic
This years Hero Building project in with the Simply Pine/Essex House/Crosby building on Murray St.
.
14
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And BusinessGBDG Report 2016-17 and Business Plan 2017-18
Totally Locally
This year’s Totally Locally campaign has stalled somewhat with local business owners not taking up
the opportunities to work with the Totally Locally Brand. Therefore, GBDG has changed the marketing
focus from Totally Locally to becoming an avenue to market upcoming GBDG events and to
disseminate important information.
Sponsorship
Sponsorship throughout 2016/17 included:
Community Radio
Gawler Carols
Change Music
Festival of Words.
New sponsorship arrangements will be considered as they are presented.
OPERATIONAL STRATEGY
Operations of the Gawler Business Development Group Inc. for 2017/18:
Accounting Peter Caddy (Treasurer)
Symes Accountants
M: 0415 775 863
E: [email protected]
Business Liaison and Marketing Coordination Caren Brougham
M: 0488 440 588
E: [email protected]
Website Maintenance Shane Bailey
T: 08 8523 1018
E: [email protected]
Graphic DesignCara Briscoe
M: 0408 893 342
E: [email protected]
Admin Support
Adele Stoakes
Contact via Caren Brougham
15
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And BusinessGBDG Report 2016-17 and Business Plan 2017-18
Gawler Business Development Group Inc. Board Contact List 2016-2018
NAME
BUSINESS
REPRESEN
TING
TEL
EMAIL
Louise Drummond
(Chair)
Personal Touch
Home Cleaning
0427 604 703
[email protected]
Gary Iremonger
(Deputy)
Peter Caddy
(Treasurer)
Eagle Foundry
B&B
Symes
Accountants
Listed
Position no
region
Other
8522 3808
[email protected]
8522 2633
[email protected]
Kim Peake
(Secretary)
Tania George
Kornacraft
Sewing Centre
The Kingsford
Hotel
Mensland
Gawler
The Bunyip
Tony Piccolo MP
Jewellery
Journey
Alchemy Cafe
Listed
Position no
region
Town Centre
8522 3246
[email protected]
Town Centre
8523 5186
[email protected]
Town Centre
8522 1239
[email protected]
Town Centre
Town Centre
Town Centre
85221233
8522 2878
8523 0918
[email protected]
[email protected]
[email protected]
Gawler
South
Other
0478 619 492
[email protected]
0456 166 994
[email protected]
Council (1yr
term)
0407 472 373
[email protected]
0488 440 588
[email protected]
8523 1018
[email protected]
0488 440 588
[email protected]
Greg Matz
Margaret Betts
Tony Piccolo
Faye Bagnall-Stevens
Mignon McLeod
Kristal Lane
Cr. Kevin Fischer
NON-VOTING
MEMBERS/STAFF
Caren Brougham
Shane Bailey
Adele Stoakes
Springwood
Gawler East
Town of Gawler
Business Liaison
& Marketing
Coordinator
Website
Maintenance
Admin Support
Board must consist of a Chair, Treasurer and up to 11 Members
16
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GAWLER BUSINESS DEVELOPMENT
GROUP
REVIEW REPORT
FEBRUARY 2017
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1. Background and Brief
The Gawler Business Development Group Inc. (GBDG) was established by the Town of Gawler (Council) to assist with promoting and marketing the businesses
within the Council area.
An agreement exists between GBDG and the Council which is current until 30 June 2018. Under the terms of this agreement a separate rate/levy is charged
to commercial and industrial properties within the Gawler Local Government Area for the specific use of GBDG.
The expectation upon GBDG under the agreement is for it to:
•
•
•
•
Promote and market the businesses within the Council region.
Develop and adapt strategies to manage co-ordinate and fund marketing initiatives.
Support and encourage the economic viability of businesses within the Council area.
Represent the interests of the business community.
The GBDG, and acting in accordance with a recommendation from Council engaged an external consultant to prepare a report based around the future
relationship of GBDG and GBDG recommended the report addresses
•
•
•
•
The synergies between GBDG and Council
How the GBDG sees itself working with Council to grow the local economy
How the GBDG can fit in with the future plans for Gawler
Developing strategies for moving forward and gain an understanding of the potential assistance the GBDG may be able to provide in respect of
managing components of the future Business Innovation Hub
In addition to the above the GBDG requested that the consultant review:
•
•
•
•
The current services provided
Assess the extent to which the current services align to the objectives of Council, specifically in relation to the Community Plan
The future capacity and capabilities of the GBDG
The alignment of the current services to the current Agreement
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2. Findings
This report finds that the GBDG is operating in accordance with its Agreement however it is having limited impact on the economic development of the Gawler
region. Given the resources that have previously been available to the group, from both a financial and personnel perspective, it is inconceivable that such a
group could have had a significant impact on economic activity.
However, the GBDG now has new personnel with the experience and educational, management and foresight to move the entity forward taking services to
the next level plus access to a business owner’s education program, a highly credentialed business advisor, and a training platform for education of future
advisors. Access to these resources provides the GBDG with the opportunity to roll-out a program that can significantly increase the profitability of businesses
in the region, which will drive employment and spending growth.
The education program provides a platform for the GBDG to engage with the proposed Innovation Hub and to more closely align itself with the overall
objectives of Council as outlined in table 2 of the Strategic Directions Report 2014-2018.
Current - The GBDG has now secured State Government Funding to pilot a program consisting of 6 educational programs in collaboration with The Stretton
Centre, Business SA and Philip Arnfield. These programs will assist with increasing the viability and profitability of current and intending businesses throughout
the 5115, 5116 and 5118 postcode areas and as also contribute positively to the economic development of the region. The pilot program funding is for a
limited number of participants and as such, the GBDG recently allocated further funding from its levied funds for a second intake for the program maximizing
the potential number of participants.
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3. The Current Services Provided by GBDG
My assessment of the services provided is based on discussions had with the Caren Brougham, various GBDG committee members and descriptions of
expenditure categories outlined in current financial budget.
I am of the view the funds being spent would do little to add to the economic viability of businesses within the Council region, and I commend Caren Brougham
in respect of her view there needs to be a refocusing of effort.
My thoughts are supported by the lack of engagement of the vast majority of the 1,200 business in the region.
The current budget reveals of the non-employment and administration expenditure
•
•
•
•
29% is allocated to a festival and decorations.
19% is allocated to education and support.
19% is allocated to networking events.
42% to other activities.
Employment and administration expenditure accounts for 53% of total expenditure. Given the relative small size of the budget (total expenditure is only
$225,000) the percentage of administration costs has to be high given a full time employee is engaged, however this necessitates a requirement for high
leverage. By that I mean that much of the work of that employee should be in support of activities supporting business growth and profit improvement for
local businesses. (education and coaching/advisory services)
Such activities are absent from the budget.
Even the services that fall within the category of business education and support such as networking events, key note speakers, and training breakfasts are
what I would consider to be low end and low impact in respect of business growth, profitability, and business viability.
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4. Assess the Extent to Which Current Services Align to the Council Objectives
The objectives of Council are outlined in table 2 of the Strategic Directions Report 2014-2018, prepared by the Town of Gawler. I have reviewed the Goals,
Objectives, and Strategies outlined in the document in the following context. ignoring any limitations in respect of funding and expertise, what strategies
would it be reasonable for a Business Development Group such as GBDG to be aligned to, and actively engage with?
GOAL 1: A Uniquely Identifiable Township
Objective: 1.2 Build a local community that is proud of Gawler
1.4 Create a vibrant and active, event filled council area
1.5 Value the role of community spirit and pride
Strategy
Extent of Alignment
1.2.2 Develop attractive and active spaces to
better integrate places of play, interaction,
Not aligned and not applicable
learning, exercise, and community events
1.2.4 Encourage and promote our countryfriendly community
Well aligned
1.4.1 Develop a vibrant township which is
reinforced by its historic character and variety of
readily accessible parks, shops, services, sports,
events, and entertainment
Well aligned*
1.4.4 Strengthen the position and promotion of
Gawler as a regional centre
Somewhat aligned
1.5.1 Develop and implement an Arts and Culture
Plan for Gawler which includes funding for public
artwork and support of local events
Well aligned*
Details
Through the provision of networking events and
breakfast education sessions, educational and
networking events, Social Media and
involvement/sponsorship/support of Community
activities
Through the staging of the Annual Jazz Festival, SALA
Art Festival, promotion of events, Hero Building
Fund, cross promotion of Rotary Village Fair and
Sustainable Living Festival.
Through the provision of events with key note
speakers, Jazz Festival, SALA Art Festival, support of
the Christmas Carols.
Through the staging of the Annual Jazz Festival, SALA
Arts Festival, sponsorship of Gawler Carols, cross
promotion of Rotary Village Fair and Sustainable
Living Festival
*I consider the Jazz festival to be an activity that should be outside the scope of a Business Development Group Current – The Jazz Festival Budget has
been halved for 2017 and GBDG is now working with 2 jazz specialists to refocus the event.
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Assess the extent to which current services align to Council objectives (continued) The objectives of Council are outlined in table 2 of the Strategic Directions Report
2014-2018, prepared by the Town of Gawler. I have reviewed the Goals, Objectives, and Strategies outlined in the document in the following context. ignoring any limitations
in respect of funding and expertise, what strategies would it be reasonable for a Business Development Group such as GBDG to be aligned to, and actively engage with?
GOAL 2: Sustainable Growth Management
Objective: 2.1 Physical and social infrastructure to match population growth
2.6 Local economic activity to create local job opportunities and generate increased local wealth
Strategy
Extent of Alignment
2.1.3 Support the timely provision of community
facilities and services to meet community
expectations
2.6.1 Implement a digital-based business attraction
and retention scheme
2.6.2 Promote the opportunities created by the NBN
and broadband infrastructure
2.6.3 Investigate opportunities for tourism
2.6.4 Engage with business to promote Gawler as a
regional activity centre
2.6.5 Develop policies to encourage business to better
use the public realm
2.6.6 Take advantage of state and federal government
initiatives that create local and regional jobs
2.6.7 Promote Gawler as a regional activity centre and
the preferred home for professional service providers
2.6.8 Promote Gawler as a regional centre for
education by supporting existing service providers and
encouraging additional opportunities and facilities in
Gawler
2.6.9 Develop and implement an Economic
Development Strategy
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COUNCIL MEETING 23 MAY 2017
Details
Not aligned and not applicable
Not aligned
Somewhat aligned
Somewhat aligned
Not aligned
Future - This is considered to be an area where the
GBDG would be able to assist the Town of Gawler.
Through collaborative promotion and information
sessions for the NBN with Town of Gawler and Telcos
Through a newly developed Tourism project in
collaboration with Kiik Start and RDA
Current - Planning is underway to engage a facilitator
to bring the business community together to develop
a Gawler Business Community brand/identity (as per
2.6.3)
Not aligned
Somewhat aligned
Through promotion of current State Employer
Incentive Programs
Not aligned
Future - Assist Council with promotion
Not aligned
Current – New Business Education Programs currently
underway with media coverage on radio and in local
print media.
Not aligned
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Assess the extent to which current services align to Council objectives (continued) The objectives of Council are outlined in table 2 of the Strategic Directions
Report 2014-2018, prepared by the Town of Gawler. I have reviewed the Goals, Objectives, and Strategies outlined in the document in the following context. ignoring any
limitations in respect of funding and expertise, what strategies would it be reasonable for a Business Development Group such as GBDG to be aligned to, and actively
engage with?
GOAL 5: A Strong, vibrant Community
Objective: 5.1 Support and encourage community team work
5.3 Deliver ongoing effective and efficient services, including support for regional collaboration
5.4 Create and support community partnerships that contribute to the implementation of this Plan
Strategy
Extent of Alignment
5.1.1 Work collaboratively with all sectors of the community to encourage
and support teamwork
Somewhat aligned
5.1.2 Value, support and advocate on behalf of community groups,
organisations and volunteers
Well aligned
5.1.3 Encourage and facilitate opportunities for community interaction,
connection and collaboration
Well aligned
5.1.4 Foster leadership opportunities that support and develop passionate
and skilled citizens and community leaders
5.1.5 Support the establishment of scholarships and mentoring programs to
support young future leaders
Not aligned
Somewhat aligned
5.3.1 Represent and promote the needs, interests, and aspirations of the
community
5.3.3 Develop Gawler as an internationally recognised and accredited
“smart” community
5.3.4 Develop and implement strategies to encourage and empower the
community to participate in consultation activities as part of strategic
decision making for the future of Gawler
5.4.1 Identify areas of community expertise, experience, capacity and
interest to assist in the delivery of this community plan
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COUNCIL MEETING 23 MAY 2017
Details
Through sponsorship and
promotion of community
events, working collaboratively
with Town of Gawler on Fringe
activities
Through sponsorship and
promotion of community events
Through sponsorship and
promotion of community events
Through partnership with Think
Gawler and newly planned
projects for 2017
Not aligned
Not aligned
Somewhat aligned
Through sponsorship and
promotion of community events
Not aligned
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5 Assess the Extent to Which the Current Services Align to the Funding Agreement
Findings in the review are somewhat critical of the extent of the services currently provided by GBDG, although those services do align with conditions of the
agreement. The requirements of GBDG under this agreement are outlined in Section 1 of this this report (refer page 3). The activities outlined below satisfy
compliance with the agreement.
•
•
•
•
•
•
•
•
•
Promotion and maintenance of the on-line business directory
Business expo planned for 2017
Business Networking events
Totally Local campaign
Business Educational events
Business Workshops
Provision of Marketing opportunities to the business sector
Promotion of the business community via Social Media platforms, print and audio media
Dissemination of information to businesses
6 The Future Capacity and Capability of GBDG
An opportunity exists to enhance the service offering of GBDG so as to significantly expand its capacity and capability. GBDG has access to a best in class
business owner’s education program as well as the creator of the program and has secured the opportunity to have the program included in a pilot of
educational programs commencing in March 2017 in addition to a new range of informative and educational events and expos planned.
The delivery of this program to businesses in the region has the potential to significantly increase economic activity. The economic premise behind this
statement is as follows:
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Profit drives
spending &
employment
spending drives
profit &
employment
employment
drives spending &
profit
The simple fact is that if you want to stimulate economic activity, so something to increase the profitability of businesses in a region. Profits drive employment
growth and spending, and there is a direct and circular relationship between profit, employment and spending.
If a plumbing business makes more profit the owner of that business is going so spend more money. A proportion of that business is going to be spent in the
local grocery store, which increases the profitability of that business. The owner of the grocery store will have more money to spend and may decide to bring
forward the painting of the building that is long overdue. The local painter now makes more money and so on.
7
times, that is how often a dollar generated in a regional economy is turned over according to a 2010 Nuffield Scholarship Report prepared for the
Eyre Regional Development Board. Every additional dollar in profit generated by businesses in the Gawler region will result in $7 of additional spend.
When revenue and profits are on the rise so too are employment opportunities.
It is sensible therefore to apply this simple test to every dollar spent by groups such as the GBDG. Will this expenditure directly increase the
profitability of a local business, or provide support to an initiative that will increase the profitability of a business? How will the expenditure increase
profit, and what is the likely increase?
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The Future Capacity and Capability of GBDG (cont.)
6.1 International Recognition as a Smart Community
Through the establishment of specific and measurable economic growth targets, and of course the achievement of those targets, GBDG will make a significant
contribution to the town of Gawler being internationally recognised as a Smart Community
A Smart Community raises the digital skills of the people in the community so they can boost creativity, knowledge sharing, and experimentation. Through
innovation a Smart Community drives job creation and economic growth.
The education of the business community is the key to the achievement of this bold plan. Specifically, the education as to what drives profitability in a small
business. There have been numerous attempts by governments to deliver business information, but there has been no attempt to educate on the drivers of
profitability.
6.2 Economic Growth Targets
There are 1.200 business registered in the Gawler region, over the time frame of this project (refer 6.4 below) GBDG aims to engage with them all. However,
for the purpose of setting economic growth targets for this project it has been decided to take a conservative position and estimate GBDG engagement is
limited to 300 of the businesses.
The business education program has a goal to increase the profitability of graduate businesses by 60%. Set out below is an estimate of the economic growth
that could be expected to be achieved.
Targeted business engagement with the education program:
Estimated average annual net profit before tax of the businesses above:
Targeted net profit improvement
Estimated percentage of businesses achieving profit growth target of 60%
Average Tax rate
Estimated multiplier to be applied to after tax profits generated as per
Nuffield scholarship Report referred to above
300 businesses
$80,000
60%
25%
27%
7
Businesses x Profit x % Improvement x Success % x multiplier x after tax % = economic growth
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300 x $80,000 x 60% x 25% x 7 x 73% = $18,396,000
That number of additional activity will recur annually.
There is no doubt each of the assumptions in this analysis could be challenged. There is no doubt however that increased profitability will drive economic
growth, GBDG is happy to accept a revised calculation of the economic activity it aims to generate from any interested party.
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The Future Capacity and Capability of GBDG (cont.)
6.3 Measurement of Performance Against Targets
GBDG will measure performance against the economic growth targets by asking businesses engaged in the education programs to advise of the profit
improvement they have achieved. This will be an easy measure to achieve as it is a part of the reporting mechanism business owners utilise during the
education program.
6.4 Time Frame
The time frame over for the achievement of the economic growth target is three years after the commencement of the education program.
6.5 Delivery of the Education Program
The Future Capacity and Capability of GBDG (cont.)
The single biggest factor holding back profit improvement in the small business sector is a lack of accountability. This is the result of the lack of separation
between ownership, control, and management. In the corporate world shareholders appoint directors and the directors are answerable to shareholders and
are held accountable for results. Directors appoint a management team to implement their plans, management is accountable to the board for results.
In a small business the owner, directors, and management team are usually one and the same. It is impossible for accountability to exist in such an
environment. Results therefore suffer.
The GBDG plans to instil accountability into the small business process by offering members of the education program to benefit from the corporate model.
The proposed Innovation Hub is seen as a perfect vehicle for introducing this initiative.
6.7 Financial Considerations
A detailed financial model has not been created as a part of this document, it is not appropriate to prepare such a model until the extent of funding is available.
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7. Consultants Links to GBDG
As the author of this report and the creator of the Build a Better Business program it is important for me to make it clear and explicit, this report does not
represent an independent assessment of the business owner’s education program.
I am well known to the Business Liaison and Marketing Coordinator for the GBDG, Caren Brougham, and she is also aware of the content of my training
program.
I was approached by Caren Brougham to consider rolling out the program with GBDG because my programs have been rolled out successfully with other
organisations she has worked for.
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8. How the GBDG Can Fit in with the Future Plans for Gawler
By the adoption of business education focus the GBDG believes it can play a significant part in the future plans for Gawler.
GOAL 1: A Uniquely Identifiable Township
Objective: 1.2 Build a local community that is proud of Gawler
1.4 Create a vibrant and active, event filled council area
1.5 Value the role of community spirit and pride
Strategy
Extent of Alignment
Now
Potential
1.2.2 Develop attractive and active spaces to
better integrate places of play, interaction,
Not aligned
Significant
learning, exercise, and community events
1.2.4 Encourage and promote our countryfriendly community
Well Aligned
Aligned
Well Aligned
N/A
Somewhat Aligned
Aligned
1.4.4 Strengthen the position and promotion of
Gawler as a regional centre
Not Aligned
Significant
1.5.1 Develop and implement an Arts and Culture
Plan for Gawler which includes funding for public
artwork and support of local events
Well Aligned
N/A
1.4.1 Develop a vibrant township which is
reinforced by its historic character and variety of
readily accessible parks, shops, services, sports,
events, and entertainment
1.4.2 Promote people orientated activities at key
town precincts
Details
The proposed Innovation Hub will be the central
point for collaboration and learning for business
owners in the region.
Through the Business Advisory Board plans and
Management Control Plan whereby members
play a role in each other’s businesses.
Recommendation that Jazz Festival be
administered elsewhere than GBDG
Education activities through Innovation Hub
It is expected that business owners from within
and beyond the region will be attracted to
Gawler to participate in the Education Program
Recommendation that Jazz Festival be
administered elsewhere than GBDG
*I consider the Jazz festival to be an activity that should be outside the scope of a Business Development Group
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How the GBDG Can Fit in with the Future Plans for Gawler (Cont.)By the adoption of business education focus the GBDG believes it can play a significant
part in the future plans for Gawler.
GOAL 2: Sustainable Growth Management
Objective: 2.1 Physical and social infrastructure to match population growth
2.6 Local economic activity to create local job opportunities and generate increased local wealth
Strategy
Extent of Alignment
Now
Potential
2.1.3 Support the timely provision of community
facilities and services to meet community
expectations
2.6.1 Implement a digital-based business attraction
and retention scheme
2.6.2 Promote the opportunities created by the NBN
and broadband infrastructure
Not aligned
Significant
Not aligned
Significant
Somewhat Aligned
Significant
Somewhat Aligned
Somewhat
Not aligned
Significant
Not aligned
Significant
Not aligned
Significant
Not aligned
Significant
Not aligned
Very Significant
2.6.3 Investigate opportunities for tourism
2.6.4 Engage with business to promote Gawler as a
regional activity centre
2.6.5 Develop policies to encourage business to better
use the public realm
2.6.6 Take advantage of state and federal government
initiatives that create local and regional jobs
2.6.7 Promote Gawler as a regional activity centre and
the preferred home for professional service providers
2.6.8 Promote Gawler as a regional centre for
education by supporting existing service providers and
TOWN OF GAWLER
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Details
Support of the Innovation Hub
Members will be engaging with the education project
online, business will therefore be digital savvy and
attract related service businesses
Members will be engaging in Online learning, a
product greatly enhanced by NBN in addition to the
newly developed relationship between the nbn co and
GBDG to disseminate information to the business
community.
Education program will benefit tourism based
enterprises in addition to the newly developed
relationship with KiiK Start – Ali Uren and the tourism
project being develop0ed by KiiK Start.
It is expected that business owners from within and
beyond the region will be attracted to Gawler to
participate in the Education Program
Businesses will have reason to engage with the
innovation Hub
The education program will groom businesses for
access to Entrepreneurship & Industry Skills Funding
Successful profitable & growing businesses attract
service providers like bees to a honey pot!
The success of the education program will attract
business owners from surrounding districts to work
and collaborate in the Gawler area
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encouraging additional opportunities and facilities in
Gawler
2.6.9 Develop and implement an Economic
Development Strategy
TOWN OF GAWLER
COUNCIL MEETING 23 MAY 2017
Not aligned
Very significant
Page 42 of 45
The best economic development strategy is to
encourage business owners in the district to grow
profit.
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GOAL 5: A Strong, vibrant Community
Objective: 5.1 Support and encourage community team work
5.3 Deliver ongoing effective and efficient services, including support for regional collaboration
5.4 Create and support community partnerships that contribute to the implementation of this Plan
Strategy
Extent of Alignment
Now
Potential
5.1.1 Work collaboratively with all sectors of the community to
encourage and support teamwork
Not aligned
Very significant
5.1.2 Value, support and advocate on behalf of community groups,
organisations and volunteers
5.1.3 Encourage and facilitate opportunities for community
interaction, connection and collaboration
5.1.4 Foster leadership opportunities that support and develop
passionate and skilled citizens and community leaders
5.1.5 Support the establishment of scholarships and mentoring
programs to support young future leaders
5.3.1 Represent and promote the needs, interests, and aspirations of
the community
5.3.3 Develop Gawler as an internationally recognised and accredited
“smart” community
5.3.4 Develop and implement strategies to encourage and empower
the community to participate in consultation activities as part of
strategic decision making for the future of Gawler
5.4.1 Identify areas of community expertise, experience, capacity and
interest to assist in the delivery of this community plan
TOWN OF GAWLER
COUNCIL MEETING 23 MAY 2017
Details
Through collaboration of
business owners at Innovation
Hub
Members of education program
will lead to potential for strong
Chamber of Commerce
operation
Innovation Hub and Advisory
Board roles
Not aligned
Very significant
Not aligned
Very significant
Not aligned
Very significant
Learners are earners and leaders
Not aligned
Very significant
This is a core course in the
education program
Not aligned
Very significant
See all of above
Not aligned
Significant
Not aligned
Significant
Not aligned
Significant
Page 43 of 45
Refer reference to smart
community in section 6
Profitable business owners are
far more likely to become
involved in community
consultation
As businesses grow in
profitability their owners have
more opportunity to give back
to community
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9 The Synergies between GBDG and Council
The GBDG has a vested interest in the enhancement of the economic wellbeing of its members and Town of Gawler has a clear interest in the economic
viability of its region.
The business education program outlined in this document provides an opportunity to build the synergy between the two organisations.
Synergy between teams or organisations must be developed over time, it is not something that can installed or switched on. There is no better foundation
to build synergy than collaboration on a project requiring team work and co-operation that produces mutual benefit.
With appropriate leadership the business education program has the capacity to create a positive environment adding renewed strength to the
relationship between Town of Gawler and GBDG.
10. How the GBDG sees itself working with Council to grow the local economy.
The specifics of how the GBDG sees itself working with Council to grow the local economy are outlined throughout pages 26 to 28 of this report.
But perhaps the story I have written on the following page best explains how the strength of individual businesses can impact the economics of a region.
TOWN OF GAWLER
COUNCIL MEETING 23 MAY 2017
Page 44 of 45
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A
woman enters a dimly lit foyer of the only hotel
in town, she disturbs a tired looking innkeeper busy
moving paper around his desk.
“I require a room for two nights, do you have any
available?”
“You are in luck, we do have a room” Remaining
seated on a chair listing slightly to one side the
innkeeper rolls himself across the office floor and
selects a single key, from a board full of keys. It was
several days since the last room was let and he
wished he had got around to dusting the surfaces of
at least one.
“I will require a one-hundred-dollar deposit.”
The traveler placed her credit card on the desk.
“I am sorry, credit cards are not accepted in this town
any longer, the fees are way too high.”
Her head moved ever so slightly up, then down “I
understand.”
The one-hundred-dollar note she removed from her
wallet was one of several, the sight of this wellstocked repository produced an involuntary
widening of the innkeeper’s eyes followed by a chain
reaction of facial movements including a gathering of
creases on his forehead and the widening of the
mouth into a supercilious smirk, eventually settling
into a welcoming smile.
In exchange for the note the innkeeper handed the
woman a key.
“I am sure you will enjoy your stay, just ask if there is
anything you need. Rooms are on the first floor,
room three is the second on the left.”
“Good afternoon Paul, I can finally pay off my
account, her is the one hundred dollars I owe you.
Must run I have a guest in the hotel”
As the innkeeper bustled back to the hotel, Paul the
grocer crossed the road and entered the freight
company office.
“Mary, I am so sorry I am behind again, but I can at
least pay one hundred dollars of my account.”
“Thank you Paul, it is a start.”
By this stage the innkeeper was back in his wobbly
chair moving more paper around the desk, he looked
up and was pleased to see his friend Mary enter the
lobby. At the same time the traveler was coming
down the stairs. Both now stood before the
innkeeper’s desk.
“You were here first.” The traveler motioned Mary to
transact her business.
Handing the one hundred dollar note to the
innkeeper Mary was brief. “I can see you are busy, I
will come back later, this should be enough to pay my
account for last month. See you soon.”
The innkeeper was excited, after a slow week he had
received two hundred dollars in the one morning,
and the traveler stood before him, perhaps ready to
spend more!
“How can I help you?” asked the innkeeper
“I am very sorry but the room is filthy, I am going on
to the next town and will stay there, please refund my
deposit.”
Before she reached the top of stairs the innkeeper
was in the street, one hundred dollars in hand,
making his way to the grocery store.
The traveler left town without spending a cent, the
innkeeper, grocer, and the freight operator reduced
their indebtedness to each other courtesy of the
traveler’s temporary deposit. The combined net
wealth of the local economy increased by three times
the sum of money injected into it for a period less
than ten minutes.
Head down, feet shuffling in an almost skipping gait;
a limp wave was his only acknowledgement to the
young checkout attendant standing at her station
adjacent the grocery store entrance. He bellowed a
question he did not require an answer to, or wait to
receive.
Those skilled in the dark art of double entry
bookkeeping will tell us this is an absurd tail, and
they are correct. However, it serves to illustrate the
interdependence of businesses within the same
economic community, when one does well, there is
a positive flow on affect, a true win-win situatio
“Boss in?”
The innkeeper dodged three townsfolk and their
shopping carts as he made his way down aisle four
and to the back of the store, pausing briefly at a
grubby white door with a faded sign “office”, he
pushed the door open before the proprietor had time
to respond to his light knock.
TOWN OF GAWLER
COUNCIL MEETING 23 MAY 2017
Page 45 of 45
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