Let’s begin this with a short discussion of a typical Chamber of Commerce. I know; it’s a wonderful organization that seems to have the well-being of the business community at heart. After all, it meets every third Tuesday and you get to rub elbows with the rich and famous over an overcooked chicken thingamabob. Your Chamber may be different, but across the board, most are interested in a small minority of businesses in your town, the big ones. Many Chambers tend to focus their attention on the auto dealerships, the big retailers, the banks, and the chain stores. They neglect small growing businesses, not because they are “not worth the effort,” but because the ultimate goal is muddied by big money interests.

Think about it for a minute. Where does the money come from to support your local auto dealership, franchised auto repair, franchised hamburger joint, multi-national bank, and the other large businesses? Out of your pocket, right? A good portion of the money you spend at the “superstore” goes to Chicago, LA, or Detroit. After some local expenses, not much of it stays in your community. It travels right out of your pocket into the pocket of a financier in New Jersey or Connecticut. Yes, these large organizations contribute to jobs in your community, but what happens to the money the community spends at these “foreign” stores? It certainly doesn’t stay in town!

It is my opinion that a really great Chamber would focus its attention on helping local small businesses grows. These growing businesses could send their products out of town to other locations to attract that money into your town, right? A great Chamber would be helping “Joe” to build that new stamping plant, or “Mary” to improve her internet gift business, or “Bill” to improve his traveling seminar business. Keep this in mind, “The members of your business community who sell outside your area are also people in your community that can create new money for growth!”

"Not so!" you say. The ABC department store down the street employs 100 people, and practically every fast food restaurant in town employs around 30 to 40 people. This statement is correct, but there is more to the subject. Here are some points for you to consider and an action suggestion to help you and your community.

BANKING
The typical banker will say he or she generates community money by taking the money you put into checking and savings accounts and loaning it to others. This does temporarily increase the money supply, but it also increases the community debt. If no new money comes into the community, no new loans can be made.

RETAILING & FAST FOOD
Retailers and franchise operations take your money and distribute a good chunk of it to people in other communities. Only a small portion stays in your town as rent, utilities, and salaries. The rest gets divided between corporate owners, stockholders, wholesalers and manufacturers supplying the merchandise you buy. The major groups of retailers contributing to the money supply in your community are those selling to the tourist trade.

SUPERMARKETS
The dollars you spend on your groceries came from the money you earned working for the department store which got its money from other people like you. Yes, this multiplies the effects of the money in the community, but it does nothing to create new money! It’s only when new money comes into your community that the “multiplier effect” really takes over.

GOVERNMENT
Government jobs are a two headed beast. They do provide new money, but the larger the government “business” in your area, the higher your overall taxes spiral to furnish the money for those jobs. (Are you REALLY better off today than you were last year?) Those who feel that getting a government plum for a community is good are most likely politicians looking for another way to increase their power base.

THE REAL SOURCE OF WEALTH
Putting aside government activities, the only way to increase the wealth of your community is to bring in fresh money. This means you have to make, grow, or mine something that gets shipped out of your area. That something could be farm or ranch products, computer software, manufactured products, raw materials, or most anything else. The main factor is that someone outside your community pays money to someone inside your community.

WHAT YOU CAN DO
The primary sources of money for your town are those businesses that sell goods and services to people in other states or communities. Working with these firms to help them grow is the most productive activity a Chamber of Commerce can take. I feel that your Chamber should be actively providing the tools to cut red tape and reduce bureaucratic frustration, build coalitions, and help these important firms promote their products to other states. Anything less and your Chamber is missing the golden opportunity to help your community to grow.

Talk with your chamber about its goals of helping your community grow and prosper. If that doesn’t work, why don’t you get together with the other small businesses in your community and have a talk?

(NOTE TO EDITORS: PLEASE INCLUDE THE FOLLOWING.)
Paul Tulenko is a Small Business Success Consultant based in New Mexico. Additional tips and suggestions are available at www.tulenko.com or call (toll-free) 1-866-TULENKO.