When you think about the State of Missouri, most people generally think about the city of St. Louis. It definitely is a place to start virtually any type of business, and with its large population, future business owners see it as the number one place to consider. After all, when it comes to brick and mortar businesses, it is all about location, location, location.
But there are a number of other factors to consider that are critical when choosing a strategic location for a new business. Across the state there are many solid alternatives, so while perhaps they do not immediately come to mind, or maybe even unheard of, they are better suited for a business.
One of the other factors to consider is the average annual revenue per business. As it is said, numbers do not lie, and this factor is clearly an indicator of the success potential for any business. It basically takes the pre-tax revenues of the business and averages them over a five year period. This long term outlook and data is one of the most important features of choosing a location, and of starting or relocating your business.
Though this factor does not apply to all businesses, it is important for business that has a high rate of failure within the first two years, such as restaurants – the number of businesses per 100 people. This is an analytical measurement of not only the competition, but of one of the overlooked factors which is the labor force. It is not a matter of simply having large numbers of people, but having people with the skill sets you need within a specific geographical radius. The rule of thumb is a 45 hour commute is the maximum you want potential employees to drive coming to work. Missouri has an excellent highway transportation system, and its large number of open spaces throughout the state limit traffic congestion.
This leads us to the third factor, the number of businesses with paid employees. Another measure of the availability of labor, the hidden importance of this factor is the general economic health of the area. A large number of people who are getting paid translates to a large number of people who have money to spend, locally and online. The online factor cannot be ignored in today’s business marketplace. This measurement is particularly important if you are starting a local business such as a restaurant or supermarket.