7 Essential Steps for Creating a Successful Economic Development Strategy

7 Essential Steps for Creating a Successful Economic Development Strategy Main Photo

3 Feb 2025


News, Strategic Plan

Creating a successful economic development strategy is a highly organized process, but it can also be a fun, productive experience for a community. Holding meaningful discussions about the strengths and challenges everyone is facing prompts positive change and a more prosperous future. Whether you enlist assistance from a third-party expert in crafting economic development strategies, such as Golden Shovel Agency, or lead the process independently, incorporate these seven steps into strategy sessions to streamline while maximizing results.

Steps for creating a successful economic development strategy

1.  Review where the community is at today

Economic development strategies map out a bright future for a city or region, but to get there, they require taking a hard look at where the community is in the present. In the review stage, conduct a SWOT analysis, examine the local economy, and start collecting data to help inform future decisions.

When analyzing the local economy, look at the workforce, existing industries, and ready resources. Collect data documenting employment numbers, education, income ranges, businesses, and more. For communities undergoing shifts in any area, collecting data for multiple years can help track transitions.

2. Set reasonable, trackable goals

Reviewing your data and identifying strengths, weaknesses, opportunities, and threats will generate tons of ideas and paths forward. The greatest task is to turn those ideas into reasonable goals at all stages of the planning process. Be realistic when setting goals by considering the resources available in the community. Great goals are SMART, or specific, measurable, attainable, relevant, and timebound. Use the SMART framework when planning for the future.

3. Acquire input from the entire community

Obtaining feedback from every community section is the best way to create a successful economic development strategy. Incorporating the input of all doesn’t mean everyone participates in each stage of the process. Surveys, community meetings, and panels can serve as introductory steps in the planning phases, and feedback from these outreach efforts can be shared as data in larger strategy meetings. Strategy meetings should include key stakeholders, such as governmental, non-profit, and business leaders. Involving as many people as possible when developing an economic development strategy creates a well-rounded plan for the future and starts the process of obtaining buy-in for later implementation.

4. Zero in on economic opportunities

The SWOT analysis conducted when starting the planning process provides many potential opportunities. After reviewing data and soliciting input, it’s time to assess which plans stand out as the best, given the strengths and weaknesses in the community. Are there target industries the community is well-positioned to recruit? Is there work to be done in workforce development or infrastructure to better attract manufacturers? Is downtown development a prime opportunity for small business development? Identify the best possibilities.

5. Look at financial incentives

Achieving growth in a community is expedited by providing financial incentives. However, many cities or counties often have limited budgets for direct assistance. Examine ways to support growth through tax credits, tax increment financing districts, or by acquiring outside funding, such as grants or state development dollars. Create local grants or rebate programs to support small businesses or encourage development in specific sectors when possible. 

6. Examine workforce strategies

Developing and maintaining a trained workforce is essential for economic growth. Bring local educational institutions to the table in the planning phases. Identify ways to align training programs with emerging opportunities in the community, and focus on quality-of-life initiatives to keep professionals in the region.

7. Stay fresh by re-examining plans regularly

After setting goals and starting the hard work of implementation, it’s time to monitor. Set key performance indicators to track progress and schedule regular meetings with stakeholders to assess progress. Global economic shifts, technological changes, and other outside issues can impact plans alongside local events. Realign when needed or establish entirely new goals based on the latest data.

When an outside perspective is needed to facilitate meaningful discussions and draft a comprehensive economic development strategy, Golden Shovel Agency is here to help.