Locating PeanieSutra

location-location-location

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:

  1. Country
  2. Area / Town
  3. 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:

  1. Social: Population, Population growth, tourism and tourism growth
  2. Economic: Gross Domestic product and growth rate, inflation rate
  3. Tax: Business-, personal-, and sales tax
  4. Ownership law: Business and property
  5. Business environment: Ease of doing business
  6. Environmental Risk: Cyclone, Tsunami, Earthquake history and predications
  7. Financial Risk: Money laundering/terrorist financing risks, Corruption risks, Governance related risks, Narcotics Major List, Financial transparency risks
  8. Political Stability
  9. 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:

  1. Population density
  2. Tourism numbers: visitors, length of stay, accommodation, existing facilities
  3. Current Infrastructure: roads, buildings, communication, internet
  4. Planned Infrastructure
  5. Accessibility: ports, suppliers, medical and hospitals

In the town/area we need a specific street / beach location. This dependent on:

  1. Access to target market: Walk by traffic
  2. 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.

  1. Each of the 9 criteria are weighted. That is, not all criteria are equal, so a 100 points is distributed across the 9 criteria.
  2. A confidence level is given to the quality of the facts gathered for each criteria. 100 = 100% confident that the data is correct.
  3. Then each country receives a score, relative to the other countries and our own expectations, on a scale of 1-10, where 10 = excellent.
  4. 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:

  1. The Cook Islands
  2. Vanuatu
  3. Fiji
  4. Tonga
  5. 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.

Finding A Chill Haven Spot

Jump for joy

It has been a few interesting months since Eltje and I decided to set sail in search for the “Chill Haven”. Our journey has taken us deep into the heart of … your guessed it …. data … yes, good  old data.

You got to appreciate that we have both just emerged from a long life in the corporate business world and still have this lingering need to find data, to crush it, and let it point us in the “right” direction. At this stage still a bit more left brain 🙂

We have about 12 months to finalise what we want to do and where, and launch the business. Trust me “we have lots to do and too little time” …. ALREADY !!!! But we have already learnt form one of our Island Gurus that “there is plenty of time” …. so no stress :-)))

Allow us to offer you a high level overview of  our activities the next months.

  1. We have been in the process of accumulating data and information to help us better understand a part of the world we have only visited on holidays.
  2. We have developed an analysis approach to use this information to help prioritise a short list of locations.
  3. In parallel we have several business concepts that need prioritising and final one selected.
  4. The above 3 points are based on previous visits to these countries and the data obtained through desk research. Desk research can only tell one so much. The natural next step is then to go to the locations identified with the concepts selected to evaluate the practicalities and then finalise the Real-Win-Worth.
  5. Thereafter the entire preparation for launch commences.

In the next two posts we would like to share a bit more about how we are going about, using available data to (a) identify the right location for, (b) the winning business concept.

BTW – By the end of this year we will both be fully dedicated to our journey, meaning we will have lots more to share with you, more often … so keep posted.

If you think of something we have overlooked, please do not hesitate to tell us 😉

Ciao for now, go easy.