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"Coming Soon!"
“Coming Soon!”
These signs mark vacant buildings for so long that they fade or tear. They become a joke on local social media. Residents who were excited about the new restaurant or shop lose interest.
This is often the result of a community having business licensing procedures that are slow, cumbersome, and ultimately—not business-friendly.
If you work in government, you likely understand why it takes so long to process and issue licenses:
- Multiple departments with different approval processes
- Legacy systems and manual processes
- Incomplete applications resulting in back-and-forth with applicants
But it’s possible to reverse course, correct these problems, and speed up your licensing processes. This creates a profound impact on community vibrancy and economic health. In this post, we’ll explore what faster business licensing can do for your community.
Boost Tax Revenues
A new business provides new resources for your community. The sooner you can issue a license, the sooner it begins to operate, and the sooner the community benefits from it… But also, the sooner you can begin to collect tax revenues. That means newer roads, more parks, bigger libraries, and better-funded schools. It could even mean better salaries to help fill vacancies and reduce over-work in your department!
Create Jobs
Quicker licensing doesn’t just help entrepreneurs, it means businesses can create more jobs faster. Job growth stimulates economic activity and spending within the community. More jobs also means better income distribution among the people living in the area, making the community more stable.
It also helps other local businesses draw more people to the area. For example, if a new ice cream shop opens, families might come to enjoy a treat and then visit nearby stores. This extra economic activity can lead to even more job growth.
Attract Small Businesses
Small businesses help keep money within your local area. According to Civics Economics, 53% of each purchase at local independent businesses stays in the local economy, compared to less than 14% of purchases at chain stores.
Cumbersome licensing makes it hard for individuals to start businesses. Suppose “Karrie,” a resident in your community, wants to open a brewery. To do that, she’ll need to quit her current job as a manager at a big-box store. But she’ll need to get her business up and running as quickly as possible—she can’t afford to be out of work for six months while waiting for her license to be approved.
On the other hand, if the process is quick and easy, she can get the appropriate liquor and business licenses to start bringing in revenue faster.
Cultivate a Business-Friendly Reputation
Governments need to be business-friendly. When you make it fast and easy to open a business in your community, word starts to get around. This good reputation means more business owners might choose to open their shops, cafes, or services in your community because they know they won’t have to wait a long time or jump through too many hoops. Over time, as more businesses open and succeed, your town or city becomes known as a great place for entrepreneurs and companies, attracting even more business and helping your economy grow.
What if your municipality doesn’t have a business-friendly reputation today? Once you change your licensing processes, you need to get the word out. On your website, walk potential business owners through the process step-by-step so they can see how easy it is. Partner with your chamber of commerce on proactive outreach. With time, you can change the perception of your community.
A Cyclical Effect
None of these factors exist in a vacuum. They all build on each other with a cyclical effect to continue powering economic growth. More jobs mean more people move to your community, creating more housing demand, which then creates more jobs in the construction and real estate industries. Small, local businesses may spend money on services and supplies from other small, local businesses. Schools that are well-funded draw in families, who then spend money, and whose children may grow up to start businesses in your community, themselves!
Make Your Licensing Process Business-Friendly with GovBuilt
Now that you understand the benefits of approving business licenses faster, what can you do about it?
A modern case management and licensing solution like GovBuilt can help you to:
- Streamline approvals
- Meet deadlines
- Reduce backlogs
- Collect accurate information
- Automate manual processes
…And get businesses from “coming soon” to “now open”!
Fill out the form below to contact us for a demo today.