Jeremy Tauri: Small centres could save you money

How small centres tackle growing costs will determine whether they fail or flourish

Businesses wanting to relocate to other areas of the country have a lot of options.

What helps them make the decision to move comes down to a lot of different things, but at first consideration it's usually the impact on the bottom line, ability to bring key staff and the cost to move.

Following that it's things like the schools, things to see and do and lifestyle for the people they will have working for them.

The regions have been looking not only at how to convince businesses to make the move from the big city but what to do to go out and fetch them.

Rotorua banished most of its development contributions as a point of difference to attract business.

It is worth the investment for small centres to attract industry.

Bigger business can create or bring other support services and provide an environment of opportunities for smaller businesses to start and existing businesses in the region to grow.

And when we mean bigger business we need to be clear about what that is.

Many smaller businesses are rightly wary of adding competition that has the size and scale to wipe them out. We see examples of changes that occur in retail that way.

But think in terms of key industry, manufacture or the administration and head offices of larger corporations or government organisations. They are the organisations the regions should be vying for.

In Whangarei, discussions are happening at the Northland Chamber of commerce table with key stakeholders to work out how to make it happen. The city wants to cash in on its proximity to Auckland and demonstrate the benefits it can provide businesses.

Its business community is small enough to be personable, especially where banks and business support is concerned. This also means they can make changes and adapt.

This could be especially useful for large businesses wanting to relocate that require new build to do so.

The cost of rent and labour is much more affordable, with the likelihood of less employee turnover as you would in the larger cities -- another saving.

The workforce can be trained especially for particular roles if need be.

The cost of housing is much more affordable. There's no need to leave for work at 7am to arrive at 8.30am either.

How small centres tackle the issue will determine whether they flourish in the future or fulfil doomsday-esque predictions of turning into deserted zombie towns. I know which I would prefer.

Jeremy Tauri is an associate at Plus Chartered Accountants.