Sunday, January 5, 2014

BUSINESS DEV TIPS: How do you know if an area has the capacity to pay?

Location. Location. Location.

This is the most important factor when it comes to many businesses, they say.

But how would you know if the geographic market of your chosen location has the capacity to pay or is liquid enough to afford what you are offering them?

As a business development consultant who does market studies for clients ... I use two indicators as a guide: the density of banks and the density of pawnshops in an area.

The proximity of a location to a row of banks or a strip of pawnshops is something to look out for.

If your location is near a row of banks, that is a good sign because it means people who live and work within the immediate vicinity have excess liquidity. That is the reason banks gravitate towards it. Banks do their due diligence and the fact that they were convinced to locate a branch there is a positive validation.

Another advantage of being near a financial strip is that bank clients who transact there will most likely eat or shop nearby ... before or after.

The presence of many pawnshops, on the other hand, is an indication that people within a certain radius are not that liquid and need to pawn valuables in order to obtain much needed cash. It can also mean that criminality is high in the area and that snatchers and robbers are valued clients of these establishments.

The next time you do your market research for a new business you are contemplating, look out for these 2 red flags or "economic indicators."

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Monday, March 4, 2013

Make it Marikina!

How can we say if our city government is doing the right thing and is on the right track?
It’s true that there are a lot of ways to assess if the present administration of Mayor Del and Vice Mayor Cadiz are governing well. Low crime rates and increasing annual income of the city are just two of the many indicators to prove it.
But for me, the best way to really see if our city government is effective and doing the right thing is when we are able to encourage outsiders to live here, invest here, and come visit our tourist attractions.
Why do I say that?
Let us put ourselves in their situation. First, will you live or transfer to a place that is dangerous and dirty? Given a choice, of course not! Certainly, all of us would choose to live in a place that is safe, clean, and with a high quality of living.
Second, are you going to invest in a place where the available workforce is unskilled and uneducated? Are you going to put up a business in a place where residents do not have the capacity to pay and have no stable income? Obviously, you prefer a place that ensures a constant supply of highly educated and skilled employees; and, where residents have disposable income.
Third, are you going visit a place that is boring, inaccessible, and inconvenient? Definitely, you’d go to a place that is unique, with a rich culture, and friendly people.
Knowing these realities, Mayor Del R. de Guzman conceptualized and launched “Make it Marikina” (MIM). MIM is a “place marketing campaign” which aims to encourage both locals and foreigners alike to live, invest, and visit Marikina.
Our objective is to attract new residents, new investments, and more visitors.
This objective is the basis for the work program of each department of the city government. The department heads will then be responsible for ensuring that each employee will contribute and work towards the achievement of our goals.
“In order for us to further improve the quality of life of our constituents, we would need more income to fund our various projects,” said Mayor de Guzman, adding that, “If we succeed in attracting thousands of AB families in our subdivisions, substantial direct investments into our commercial system, and millions of tourists to visit our attractions … more people will pay taxes and patronize local businesses. An invigorated economy will also mean more employment and better pay for Marikenyos. With this campaign, we are expanding the tax-base and taking full advantage of tourism’s multiplier effect.”
“Make it Marikina!” is an appeal to AB families in search of a place to construct their dream house or a townhouse to rent to ...Make it Marikina!
It is a call-to-action to investors on the lookout for new business opportunities, to … Make it Marikina!
It is also an invitation to travelers and tourists looking for excitement or a relaxing respite, to ...Make it Marikina!
MIM aims to position Marikina City as the “Sports Hub” and “Bike Capital”. We are also working at making our sports center or Marikina Sports Park (MSP) the “Home of the Azkals”.
Exciting developments are happening in Marikina … IF done correctly, it will spell success for our city and our families. Now is the time to come together as a people. Come, Marikenyos … join us in this shared vision and common aspiration.
For outsiders … we have whatever it is you are looking for. So, please … Make it Marikina!