Opinion: How to make 2017 count beyond profits, losses

Even though this is December, there still is time to do some planning for 2017 – actions that can add to your bottom line. While those actions may not be listed on the profit and loss statement, they can have a very positive impact on your business.

Any small-business manager or owner can tell you the community where you operate will make or break your business. If it embraces you, your chances of having a successful business improve.

So making an effort to invest in the community – through either direct action or employee participation – will help your bottom line. Here are a few ways to connect:

• Goodwill. BusinessDictionary.com defines goodwill as the “assumed value of the attractive force that generates sales revenue in a business, and adds value to its assets.” It goes on to say it is intangible but does build up value in the company over time. There are some specific accounting rules for corporate goodwill when a company is sold or to control it over long periods of time, but that is not the type of goodwill I’m referencing.

I’m talking about the social contract between a local business and its community. When people see a business investing in and helping out its neighbors, they feel good about frequenting it and may actually seek out chances to patronize. They want to single out businesses that actively support issues and areas important to them.

• Reputation. This takes goodwill a step further. A business that gives back within its community is known for that investment, either tangibly or just under the radar. Over time, people know when a business takes from its local customers but doesn’t make an effort to say thank you for that support. It also is true people in the community see when a business truly is thankful for its customers’ support and shows it by underwriting local charities, participating in activities and helping out when called upon.

• Employee engagement. A lot has been said about the millennial worker and their needs to feel like they are making a difference in the world. But millennials are not the only ones who want to make a difference. If asked, most employees will say they want to make a difference, both for their families and their neighbors. Community service and volunteerism is a highly ranked benefit when good workers are looking to change jobs. According to a 2015 Newsweek survey, 76 percent of workers would leave their company if community service and outreach were cut or eliminated. When isolating just the millennial worker – usually identified as those between ages 24 and 29 – the number jumped to 85 percent.

Community service can pay off by reducing costs in recruiting top employees and keeping them on board. Associates benefit by supporting causes they believe in and are re-energized with engagement outside of their daily tasks.

• Quality of life. This phrase gets thrown around whenever companies start talking about attracting new workers to an area. But newcomers are not the only people who care about quality of life. People already living in a community would love to have a great quality of life, too. What is quality of life? It is an attractive community full of fun, engaging things to do and places to go. It is lower crime rates and higher standards of living. But as much as these, the quality of life in a community often is found in the people within a community working together toward common goals and bringing resources – financial, time, expertise and passion – together to improve the community.

For example, community workdays to clean up an overgrown park will help the area look better and increase community pride. Providing educational assistance through reading programs will help ensure a successful workforce. A strong community that works together greatly influences the general well-being of the local businesses, supporting their bottom lines and helping to recruit and retain quality workers.  

Community service, investment and engagement can make a big difference for a business, both in the quality of its services and the value of its bottom line. It may cost a little bit in employee time or in a budget line item, but it pays dividends that can affect the business’ health and is immeasurable to its long-term operations.

Summer Massey is the loan manager for Arvest Bank in Springfield. She can be reached at smassey@arvest.com.

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