Business Improvement Districts

BIDs are increasingly becoming the town centre management model of choice.

BIDs

Currently there are c330 BIDs operating in the UK, bringing together businesses to invest locally towards a collective vision for a particular location.

GJR has a proven track record in establishing BIDs. Gary Reeves its principle participated in the initial BID pilot schemes in 2001, which prepared the way for the eventual BID legislation in 2004. He subsequently established and renewed the largest BID in Europe, New West End Company.

In addition to assisting the establishment of many occupier led BIDs, including the 3 flagship central London BIDs, GJR delivered the first cross borough BID and Property BIDs in the UK.

Establishing a BID

Of the approximate 500 town centre management schemes in the UK, c330 have developed into Business Improvement Districts (BIDs) since their inception in 2004. Of these over 100 BIDs have so far reached the end of their mandated term of operation and all but a handful have been successfully renewed.

The progression from BID development to BID renewal is instructive as the level of support over time tends to strengthen; the proportion of businesses supporting renewals is greater than the initial vote in most cases and only a very small number of BIDs have failed to achieve a renewed mandate. In itself, this demonstrates the success of the BID model and the valuation placed on it by the businesses involved.

GJR has a strong track record in developing BIDs. We have worked with Town Centre Partnerships, Local Authorities and Property Owners throughout the UK helping to bring business communities together to enhance their collective commercial performance and provide business leadership in the area they operate.

Led by its principle Gary Reeves, GJR brings a commercial approach to the development of BIDs. Formed by business for business, a return on investment is paramount and to maintain the momentum of the BID model individual businesses must be ensured that their voluntary support, by way of a BID ballot, will deliver a tangible return to their business.

Our Approach

The GJR approach is led by good communication, effective engagement and thorough process. We apply industry best practice promoted by the sector’s leading representative organisations, tailor projects to their bespoke environments and above all seek a commercial approach to which the business community can lend their support.

GJR believes in the local nature of BIDs and as such provides a location centric solution to each BID development project.

Key components of the work programme:

  • Feasibility study
  • Creating a positive environment surrounding the BID development

Communications programme:

  • Engagement with business

Local and national level, quantitative and qualitative research and one to one meeting

  • Development of a BID model

Geographical boundaries, RV threshold levels, sector base and BID rules

  • The BID Proposal

What the BID will do, its budget and governance arrangements

  • A database of business constituents and decision makers
  • Formal documentation and adherence to statutory regulations

Renewing your BID

Renewing a Business Improvement District (BID) mandate can seem a daunting prospect. Yet it should simply be a communication that the business community is valuing the benefits being delivered by the BID. A straightforward confirmation of the mandate.

However often this is not the case, it is easy to become disengaged with business constituents particularly if they are large in number. Without a close ongoing relationship with members the views of voters may be unknown and the outcome of a renewal ballot uncertain.

Member Centric

GJR will ensure you remain close to your business constituents, understand their views and voting intentions. A BID should be aware of its members’ views 18 months ahead of any renewal ballot. This will provide:

  • Comfort that the renewal will be successful
  • Time to react to issues if they are identified by members

Stage 1: Assessment of member satisfaction

  • Circulation and compilation of surveys to secure quantitative input
  • One-to-one interviews with a sample of members to explore qualitative feedback
  • An assessment of the external environment
  • A report reflecting member views and an action plan for the renewal ballot

Stage 2: BID renewal support services

  • Project management
  • Business engagement and advocacy
  • Bespoke communication planning
  • Regulatory adherence
  • Getting out the vote

Developing a Property BID

The introduction of property owners into the BID model offers the potential for further increasing high street vitality.

Primary legislation enabling the introduction of a ‘Property Owner BID’ was introduced within the Business Rate Supplements Act 2009. Formal consultation was undertaken in Sept 2013, its findings published in March 2014 with regulations anticipated in October 2014. The legislation allows for a PO BID to be introduced in a location where an Occupier BID already exists and where a Business Rate Supplement is in place.

A PO BID will be established following a very similar consultation and ballot process to that of the occupier BID. A BID proposal would be drafted that serves the long term needs of the owners involved. All those that would be required to pay the levy would be involved in the development of the BID proposal and would have the right to vote.

GJR is engaged in the property BID process and can offer both experience and insight to Property BID projects.

  • An understanding of anticipated regulations
  • A process for identifying property owners
  • Insight into the demands of voters

GJR’s experience of working with property owners and can bring the expertise of working with a number of the UK’s leading property companies to the project. Specifically GJR can provide:

  • Feasibility studies
  • Creating a positive environment surrounding the BID development
  • Business engagement
  • BID modelling
  • BID Proposals
  • A database of business constituents and decision makers
  • Formal documentation and adherence to statutory regulations

The development of Property BIDs means there will be an opportunity for embracing the property sectors within the formal Business Improvement District model. Their inclusion will provide for a more medium to longer term view being taken as to the development of town centres and commercial districts and a greater voice and influence in addition to a significantly contribution to the overall budget.

A property BID will provide for an owner levy, so that landowners can contribute to and participate fully in BID activities. In the current legislative environment, there is no guarantee that an owner will contribute to a BID.

GJR believes in the local nature of BIDs and as such provides a location centric solution to each BID development project.

HR & Management Services

Business Improvement Districts (BIDs) bring business communities together to enhance their collective commercial performance and provide business leadership in the area they are established.

BID Boards are non-executive in nature and as such managing teams of people can become a distraction from their core purpose of overseeing service provision. For the Chairman in particular the HR function can be time consuming and offer unnecessary risk.

Slowly maturing, the BID sector is increasingly outsourcing personnel services to specialist providers. Outsourcing your HR and employment requirements has a number of advantages:

  • Activity focused on core activities
  • No requirement for HR / payroll function
  • Flexibility
  • Less overhead
  • Reduced business risk
  • Accessibility to wider BID expertise
  • Staff provided with greater support and opportunity

GJR is suitably positioned to manage the HR function of your business and undertake all the day-to-day personnel tasks and issues associated with staff employment, which will enable the BID to focus on its core role of service provision.

Our management services offer incorporates:

  • Line management
  • Training & development
  • Recruitment
  • Appraisal and review
  • Payroll
  • Management cover
  • Sickness & holiday provision
  • Insurance

As part of the arrangements we offer the wider expertise of GJR and its partners, which will benefit the BID and its business constituents. It is envisaged that the additional benefits of working with GJR will render the management charges cost neutral. GJR will work with the BID team to identify additional income streams and cost saving programmes to achieve this aim.

  • Savings from collective purchasing and establishment of joint procurement partners
  • Enhanced subscriptions from the recruitment of voluntary members
  • Commercial income from sponsorship and promotional opportunities
  • Sources of public funding available

BID Leadership

Business Improvement Districts (BIDs) bring business communities together to enhance their collective commercial performance. Importantly they have the potential to provide stronger business leadership in the area in which they are established.

Most things rise and fall on the effectiveness of leadership. For BIDs leadership is taking the initiative for the benefit of others. Leaders facilitating collaboration and synergy will help produce change

Leadership creates an environment for growth by:

  • Facilitating collaboration among organizations
  • Initiating worthy causes for town and city centres
  • Providing a platform with other leaders

Whether it’s lack of inward investment, poor service provision from the public authorities, competition from alternative centres or simply dealing with local issues, BIDs have the opportunity of bringing collective weight to issues that count.

GJR offers support in developing leadership techniques, workshops for BID Boards and training for Chief Executives, BID managers and senior staff.

Communication needs to be channelled in an effective manner and the leadership skills of BID Boards, Chief Executives and BID managers are critical.

Measuring Performance

Demonstrating tangible benefits is increasingly important to BID members and as such is essential to positive relationships and successful BID renewal proposals.

Putting performance measurement systems in place is essential to keeping track on the progress of your BID. It will provide vital information about what’s happening and provides the starting point setting targets that will help you deliver your BID mandate. In addition it helps to drive future improvements in performance, spot potential problems or opportunities and help set targets for departments and employees.

GJR works with local BID teams to review performance, improve measurement systems and their communication to BID members. We will help to identify key performance indicators (KPI’s) and the important areas of your business to measure.

One of the key challenges with performance management is selecting what to measure. The priority must be quantifiable factors that are clearly linked to the drivers of your members’ success and KPI’s that relate to aspects of the business environment over which you have some control.

See your business through your members’ eyes

Your priority should be to look for as close a link as possible with those elements of your performance that determine your success. Looking at things from your customers’ perspective can help you avoid getting side-tracked and maintain your member centric approach. Feedback is key – the more you know about what your members think and want, the easier it will be to satisfy them. GJR can assist your capture of this information:

  • What services your members buy into
  • Opinions are often formed before a complaint is made
  • Questionnaires and surveys
  • One to one meetings

And never forget the impact of your team members. One can design, create and manage the best place in the world but it takes people to make it a reality.

Benchmarking

Benchmarking is a valuable way of improving your understanding of your business performance and potential by making comparisons with other businesses.

GJR can provide an effective and experiential methodology to compare ‘your place’ and your BID within the sector. It is an increasingly competitive environment and ensuring your place is a location of choice is critical – understanding the environment you are operating is fundamental and focusing on those areas that drive your members’ success smart.