So where should we locate PeanieSutra?
Some commercial guru once said that there are three key success factors to winning in the consumer business, these are three …. location, location, location.
Having only travel within and never lived in any of the countries we intend to establish a business, we surely have our task cut out for us. Not only doe we need the right street location, we need to first identify the country that is best for our business concept.
In fact, in our case, location can be divided into three categories:
- Area / Town
- Street / Beach
This means we have to obtain and analyse data and information from a macro through to the micro level. Fortunately, and thank god, the internet goes long way to get this done.
You may be wondering what data and information (facts) we are gathering. And secondly how do we go about analysing it.
Okay, so first let’s explore the facts that we are gathering. At the moment we are focussed on reducing a preselected shortlist of countries down to a prioritised 2 or 3.
To aid this process of identifying a suitable country we gather the following information and facts:
- Social: Population, Population growth, tourism and tourism growth
- Economic: Gross Domestic product and growth rate, inflation rate
- Tax: Business-, personal-, and sales tax
- Ownership law: Business and property
- Business environment: Ease of doing business
- Environmental Risk: Cyclone, Tsunami, Earthquake history and predications
- Financial Risk: Money laundering/terrorist financing risks, Corruption risks, Governance related risks, Narcotics Major List, Financial transparency risks
- Political Stability
- Work Ethic
Once we have a country, we need to zoom into identifying specific areas / towns. For this we gather the following information and facts:
- Population density
- Tourism numbers: visitors, length of stay, accommodation, existing facilities
- Current Infrastructure: roads, buildings, communication, internet
- Planned Infrastructure
- Accessibility: ports, suppliers, medical and hospitals
In the town/area we need a specific street / beach location. This dependent on:
- Access to target market: Walk by traffic
- Availability, state and cost for buildings / space
Once we have the facts, or even during the gathering process, we score the locations against each criteria. For example, at the country level.
- Each of the 9 criteria are weighted. That is, not all criteria are equal, so a 100 points is distributed across the 9 criteria.
- A confidence level is given to the quality of the facts gathered for each criteria. 100 = 100% confident that the data is correct.
- Then each country receives a score, relative to the other countries and our own expectations, on a scale of 1-10, where 10 = excellent.
- The number for the three points are multiplied (1 x 2 x 3 = index score) and tallied up. The country with the highest score is the preferred one.
The current standing, after 65% of the analysis completed, sees the following Island States in the running:
- The Cook Islands
- French Polynesia
Okay, so that is the science behind identifying the right location. How do we bring in intuition, which we believe has a key role to play in entrepreneurship?
Even when gathering the best available data and information, we still lack the first hand feel for the location. For this we need to go to ground zero … stay tuned … in due course will bring you the result of the analysis followed by live reporting when we visit the selected locations around April / May 2016.
In the next post we will chat about how we are filtering our business concept ideas.