John was brought in as the CEO for a business that was getting ready to rapidly expand to multiple locations around the country. He was quite successful at helping another company expand previously. He “had an eye” for great locations and was good at picking winners. He felt something was different this time. He pulled the reports, and it looked as if the location met his customer’s demographics but he just wasn’t sure if he should pull the trigger or not.
We were fortunate to speak to John back in the days when we were first testing our algorithm. “Let’s run our algorithm on all your locations, let’s understand if this new location is an ideal spot for your new location” we told him. What our algorithm discovered was certainly not what any of us expected.
Have you ever seen a “great” retail location where five businesses failed painfully one after another? The demographics couldn’t be beat, the foot and drive by traffic were impressive, the neighboring stores were flourishing, and the broker enthusiastically claimed it looked “great”. Nevertheless, they failed. If you could crunch the massive data set (thousands of demographic, psychographic, social, mobile, and traffic data points for every retail location, store, office or restaurant) you would know exactly why.
When was the last time you saw a McDonalds, Apple, Walgreens, Starbucks, Costco or a Petco close?
Yes, they have powerful business models but they also employ teams of researchers and analysts to create complex models that help determine the ideal location.
90% of new businesses close each year. How many of them assumed they picked the ideal location based on demographics and traffic data? There are thousands of contributing factors that determine whether a great location is ideal for your business. Researching the neighborhood, speaking to a broker, or simply asking friends and neighbors doesn’t provide enough data to assess the risk before signing a long-term lease.
The Secret Spot Discovered
The report we ran for John showed that the location he was looking at presented a moderate risk based on today’s conditions. However, with the area under development that could change in the future. Nevertheless, that wasn’t the most interesting discovery. It was the discovery of the number one factor, from the over 5000 variables analyzed, that all of his locations shared. That single factor correlated with the success of each of the other locations they already opened. Now John knows that this should be the primary factor he looks for in any location, ahead of any other demographic, and it was something that he would never have assumed was so important.
IdealSpot makes determining an ideal location practical, powerful and affordable.
Until IdealSpot, this kind of massive data-driven risk analysis was not a practical, simple, time effective or cost effective process for the vast majority of businesses. Instead of tens of thousands of dollars invested in researching every location IdealSpot allows you to be even more thorough for the price of a meal at a fine restaurant.
You simply tell us a little bit about your business and your customers and we will run the analysis and tell you in just a few hours if a location is the ideal spot for your business.
Does your business deserve the ideal location? Our data will help you.