Fact: If your current decision making tools focus on annually updated database printouts with no means to interpret major structural changes that have occurred within the U.S. economy since the upheavals of 2008, you may be in trouble.
Low Density Living New Project in BPTP THE AMAARIO Sector 37D Gurgaon Haryana...
7 Key Elements to consider when selecting the right business location
1. 7 Key Elements to Consider when
7 Key Elements to Consider when
Selecting the Right Business
Location
Fact: If your current decision making tools focus on annually
updated database printouts with no means to interpret
updated database printouts with no means to interpret
major structural changes that have occurred within the U.S.
economy since the upheavals of 2008, you may be in
trouble.
trouble
2. Recognize Change,
Overcome Old Paradigms
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• Since 2007 the U S Has Experienced:
Since 2007 the U.S. Has Experienced:
– Financial Meltdown;
– Housing Collapse (Double Dip?);
Housing Collapse (Double Dip?);
– Shrinking Incomes;
– C t ti
Contraction of Households;
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– Expanding Unemployment;
–A d
And major stage of life shifts for your customers.
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• Business as usual no longer applies
4. Your Customer may have Changed
Your Customer may have Changed
In recent decades, regardless of the price range of a
neighborhood, one could count on a household moving out
neighborhood, one could count on a household moving out
across the street to be replaced by a very similar household (at
least in terms of income). With home prices dropping up to
50% in many U.S. neighborhoods, and the craziness of
foreclosures, short sales, unemployment, etc. that will
f l h l l h ill
continue for at least the next two years, THIS IS NO LONGER A
TREND YOUR BUSINESS CAN COUNT ON.
As a business owner/operator, the old paradigm meant that the customer types in your
As a business owner/operator the old paradigm meant that the customer types in your
surrounding geography of homes and apartments did not change, particularly in terms of
age and income. This is no longer true.
1946‐2007 2007‐?
5. 7 Key Elements that
Contribute to Business Success
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“Location Location Location ” the well known
Location, Location, Location, the well known
mantra of the real estate industry and point of
purchase business success. The art and science
of location assessment cannot be taught in a
two‐day seminar. The ability to accurately and
effectively analyze a location takes years of
making practical decisions and mistakes before
becoming proficient, let alone an expert. The
becoming proficient, let alone an expert. The
key is recognizing that the mantra is actually,
“Customers, Customers, Customers!”
These 7 elements will give you quick clarity
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and insight into the make‐up and business
viability of any address in the United States.
6. Residential Population: total
population of all age groups What is your minimum
living in an area as defined for
population requirement?
the particular geographical
weights of your address
category (i.e. General 1 Mile
Radius, Strip Center, Power
Center, etc.)
Population Density (# persons Urban
per square mile) ‐ the number
of people living in that
particular circumscribed area is
the key concept. Suburban
When comparing two different
sites for the same address
category, the higher the
h h h h
Residential Population the
higher the density. Rural
7. Daytime Employment: total number of
workers that travel to a specific address in
the area measured to work in their full or
the area measured to work in their full or
part time job.
Who should you target your
advertising dollars to, the surrounding
neighborhood or the office park across
the street?
8. Having access to a tool to measure the general ability of an area’s residential households
to withstand shocks to possible employment/income changes from the local and national
to withstand shocks to possible employment/income changes from the local and national
economic environment is vital to your success. A tool like this reflects the very stability of
the geographic area itself, in terms of income, employment, and the strength of the
average household’s ABILITY to be there and remain!
The Stability Strength of an area is related to
the FUTURE! It reflects the future stability of
the local economy given what is known today,
and also assesses the relative strength of an
and also assesses the relative strength of an
Have you identified which of your
area to withstand an economic hit.
locations, if any, are “at‐risk” of suffering
due to unforeseen economic changes?
9. Population by Age Cohort Digital Generation—24% of the 2010 U.S. Population
• More babies were born in the United States in 2007 than in
Breakdown: total number and
Breakdown: total number and any other year in American history (4,317,000)
percentage of each age cohort (i.e.
Baby Boomer, Gen X, etc.) in an Echo Boomer—23% of the 2010 U.S. Population
area. It is critical to understand the • Entering the beginning stage of earning and spending
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dominant age cohort surrounding power which will peak in twenty years.
your address and weight your
product mix, promotions, Generation X—13% of the 2010 U.S. Population
advertising, and overall marketing
advertising and overall marketing • The US Census Bureau cites Generation X as statistically
holding the highest education levels when looking at age
strategy to their desires and ability group.
to consume your service and/or
product. Baby Boomer—27% of the 2010 U.S. Population
• Entering the stage of life where they have retirement in
Look around your own focus, they are looking to downsize from their McMansion,
neighborhoods, when have you reduce costly expenses and save money.
y g
seen so many “children” living at
home? Bob Hope—13% of the 2010 U.S. Population
• The Bob Hope generation is primarily retired persons living
on a fixed income with very low living expenses.
10. Imagine your own neighborhood and the local geographies your
friends live in. What you experience and what you see and hear
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about those around you impacts how you think of the future and
influence your spending decisions today.
Perhaps, many of the homes in your neighborhood are
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"underwater," and those that are selling are often sold at a loss.
There are noticeably more “For Sale” signs standing in yards waiting
for a viable offer. You now see vacant homes in your neighborhood,
and maybe more in the neighborhoods around you.
Compared to last year, maybe more of your neighbors have
either lost their job or have had their wages and hours cut.
Wouldn’t an environment like that affect your willingness to
part with your cash? Would this type of environment cause you
to "splurge" less and save more when possible? Would it cause
you to grace the doors of discount/value stores with a new
mentality and check menu prices more closely when eating
out? If you haven't experienced this, good for you, but your
customers might be going through it right now.
11. Residential Occupation Make‐up: total real This can help you assess the success of a
number and percentage of white collar and
number and percentage of white collar and specific type of business.
specific type of business
blue collar workers that reside in a physical
dwelling unit surrounding your business For example, it’s likely that a hardware or
address. auto parts business would probably do
better in a 1 mile radius heavily weighted
toward blue collar, whereas a fine dining
restaurant may do better in a heavily white
collar weighted area.
collar weighted area
The residential occupation make‐up is also very
meaningful as you look forward to an area’s
prospects of future employment/unemployment
changes.
12. Average Household Income: total income brought in by all those occupying a dwelling unit in the
measured area. The total sum of all these dwelling unit incomes is then divided by the total number of
measured area The total sum of all these dwelling unit incomes is then divided by the total number of
occupied dwelling units in the area surrounding your particular address to calculate the average
household income.
Household Income Ranges and Meanings:
Household Income Ranges and Meanings:
$100,000+ = Affluent
$75,000 – 99,999 = High
$50,000 – 74,999 = Medium
$25,000 – 49,999 = Low
Below $25,000 = Poverty
Household Income is a measure commonly used by the United States government and private
institutions, that counts the income of all residents over the age of 18 in each household, including
not only all wages and salaries, but such items as unemployment insurance, disability payments, child
support payments, regular rental receipts, as well as any personal business, investment, or other
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kinds of income received routinely. The residents of the household do not have to be related to the
head of the household for their earnings to be considered part of the household's income.
13.
14. Now What?
Now What?
• You now know what the “7 Key Elements” to
You now know what the 7 Key Elements to
consider when selecting the right business
location are. Your immediate next step is to get
access to a tool that generates all 7 elements
for you ‐ for any address in the United States.
Catalyst Analytics has built that tool for you.
15. 3L Score
Powered by Catalyst Analytics
• Evaluate any address in the United States, in a matter of
y ,
seconds.
• The 3L Score is comprised of last completed quarter and
current month data. Often the information is only days old.
t th d t Oft th i f ti i l d ld
• Customized for your specific business address.
– Search by general radius circles (1, 3, or 5 mile) or by shopping center
Search by general radius circles (1, 3, or 5 mile) or by shopping center
type (strip, neighborhood, community or power center)
Do you have a concise picture of the
customer base surrounding your
business location(s)?
b i l ti ( )?