Strategies for EDOs and IPAs in Attracting Global Investments
In an increasingly complex world, the economic development landscape for EDOs and IPAs has become more challenging. Much more challenging. How can organizations keep up and better support existing businesses, while attracting more companies, investments, and jobs?
As we approach the first quarter-century mark and reflect on the events that have profoundly affected the way we live, work, and do business, it’d be a surprise if we didn't feel overwhelmed. Between disruptions and long-term changes, all events from financial crisis, debt crisis, refugee crisis, all the wars, pandemics, global inflation, and climate change, have transformed the world. Uncertainty and capacity to adapt may be singled out as the more defining duo for the future of businesses.
The world is bound to become seamlessly connected, and data has become the commodity of our time, however, the global supply chain did not follow at the same pace. As a direct effect of the disruptions caused by the pandemic, and the realization of the risks of depending on a single origin country or region, the trend of reshoring gained force and companies started reviewing their expansion plans to get closer to their consumer markets. For countries like China, which was already facing challenges with rising wages and costs, this nearshoring trend is a threat that is not easy to mitigate.
For Organizations attracting business in other emerging markets, especially those with large consumer demand for manufactured goods have an advantage in this nearshoring battle. Countries with more free trade agreements should also benefit from the process. The developed countries exploring this moment to regain manufacturing capacity may take advantage, but the success of their investment attraction efforts requires additional factors.
In a famous speech, the actor Denzel Washington summarized his thoughts with the message that “ease is a greater threat to progress than hardship". For him, obstacles are growth opportunities. We can draw insights for Organizations, and particularly EDOs promoting investments and economic development. Aside from similarities EDOs have with SMEs and Corporations, these organizations have unique missions, operating models, and mandates.
There are multiple actions organizations from municipal to federal level can take to increase their odds on the fight to attract new companies and expansion projects:
Engage Leadership
Foster alignment and commitment within organizational leadership to drive strategic initiatives effectively. Support from the executives is not enough, you need to have sponsors.
Plan with what you have
Be bold on your goals but make them achievable. Be open and work with partners from the community like think-tanks, sector associations and other external parties and experts. Be creative to find new ways to extend your resources, explore synergies and boost impact.
Execute with Agility
Be flexible and responsive to adapt to market dynamics and investor preferences swiftly. Use management tools and track key performance indicators. Create an execution-oriented environment by sharing ownership of the action plan with the team and key stakeholders.
Self-Assessment
Conduct a thorough evaluation of the region’s strengths, Industries, demographics, coopetitive analysis, opportunities, and threats to inform all other aspects of your operations. Build a collaborative library of resources that can be accessed and updated by the team and create systems and routines to maximize its impact on the bottom line by keeping it relevant and organized.
Divide to conquer
Just like regular companies do with their consumers, create “personas” from the different types of companies you’ll focus on so you can target your initiatives. The less broad the niche, the lower your deal acquisition cost will be.
Communicate with purpose
Maintain transparent and proactive communication channels with stakeholders to convey the value proposition of investing in your region. Invite experts to write articles, interview companies that expanded and succeed there, tell the world what make your region unique.
Understand and reach out to Investors
Research prospect companies to understand needs and pain points. Keep track of current and past expansion projects and companies in markets like yours, to tailor outreach and engagement efforts effectively. Connect directly with decision makers in webinars, events, LinkedIn, and be ready to follow through and advance conversations with marketing collateral and relevant information. Professional FDI lead gen services are an important part of the funnel strategy for our clients, not only for the volume but also for key information that allows a comprehensive engagement and rapport between the EDO’s team and the prospect.
Nurture your leads
It’s fundamental to dedicate efforts to bring in new leads, hire lead generation specialized support, and launch lead gen campaigns. To increase the impact of your business funnel, go the extra mile and create nurturing initiatives to develop your new prospective contacts and leads into pipelines and success stories. Use digital marketing and tools, such as MailChimp, Hubspot, WordPress, salesForce, and any other to make the most of your resources.
Two steps forward
Commit efforts to also support your region’s existing businesses. Consistent investment between your existing company pool has a fraction of the cost and boosts your overall return on investment. EDOs who succeed in nurturing its existing business also attract more investment from new prospect companies.
Navigating the complexities of the global economic landscape demands proactive, adaptive, and strategic approaches from EDOs and IPAs. By leveraging their unique advantages, these organizations can position themselves as valuable partners for investors seeking growth opportunities in a faster evolving world.
