Community engagement – the silent superpower
Pervinder Davies explains why getting the community behind your business is a crucial part of success... ...
As an entrepreneur in the alcohol industry, whether you’re opening a cool new bar, neighbourhood restaurant, or bottle store, securing an alcohol licence is an obvious and important step.
However, an often overlooked but equally crucial aspect is engaging with the community in which your business will operate. This interaction can significantly influence the success of your application and the future of your establishment.
Here, we look at the pros and cons of engaging with the community during this process.
Pros
1. Building trust and goodwill
For alcohol industry clients, establishing trust and goodwill with the local community is key. When residents see that you’re committed to listening to their concerns and collaborating with them, they are more likely to support your licence application. This support can be especially beneficial in neighbourhoods that might have reservations about new alcohol- related businesses.
2. Understanding local concerns
Engaging with the community allows you to understand their preferences and concerns. This knowledge can help you tailor your business to meet the local demands better, such as offering popular local beverages or creating a community- friendly environment, thereby making your establishment more attractive to residents.
“For alcohol industry clients, establishing trust and goodwill with the local community is key.”
3. Enhancing application success
A community that backs your business can significantly improve your chances of getting your alcohol licence approved. Local authorities often take community opinions seriously, and having their support can be a decisive factor during public hearings or district licensing committee meetings.
4. Fostering long-term loyalty
Creating a positive relationship with the community from the outset can have long- term benefits. Happy community members are more likely to become loyal patrons and recommend your establishment to others, ensuring sustained business growth and a strong local customer base.
Cons
1. Time-intensive engagement
Engaging with the community takes time and effort. Organising meetings, addressing concerns, and fostering relationships require significant effort, potentially delaying your application process and business launch.
2. Risk of opposition
No matter how proactive you are, some community members may oppose your business. This opposition can be vocal and organised, posing challenges to your licence approval and necessitating additional efforts to mitigate concerns.
3. Additional costs
Community engagement can incur extra costs, such as hosting meetings, creating informative materials, or modifying your business plan based on feedback. These expenses need to be factored into your budget and can sometimes strain your financial resources.
4. Balancing competing interests
Different community segments may have varied and conflicting interests. While some residents might welcome a new bar or bottle store, others might be concerned about potential issues like noise, traffic, or safety. Balancing these interests can be complex and may require compromises that affect your original business vision.
In conclusion, engaging with the community when applying for an alcohol licence presents opportunities and challenges. On the positive side, it can help build trust, provide valuable local insights, enhance your chances of application success, and foster long-term customer loyalty. On the downside, it can be time- intensive, expose you to opposition, incur additional costs, and require navigating conflicting interests.
Ultimately, the decision to engage with the community should be made thoughtfully. Consider your specific business goals, the nature of the local community, and the resources you can allocate to this process. Seek expert advice on how you should go about it. When approached strategically, community engagement can be a powerful tool in creating a successful and sustainable alcohol business.
Pervinder Davies specialises in alcohol licensing law and is a director of Pervinder Davies Law in Christchurch.
pervinderdavieslaw.co.nz
