County Business Patterns data, published by the U.S. Census Bureau, is used by individual businesses to find information about the size and location of establishments within their specific industry.  In the public sector, government officials use this resource to assemble big picture information about markets at the zip code, county, metropolitan and state levels. 

Let’s take a quick look at the greater Southlake market using the latest data available.1/  In 2005, this market area had 4,563 businesses.

Grapevine

• 1,602 establishments

Southlake

• 1,056 establishments

Keller

• 786 establishments

Colleyville

• 689 establishments

Roanoke, Trophy Club and Westlake

• 430 establishments

Furthermore, in mid-March 2005, there were 75,438 full and part-time employees of these 4,500 plus businesses.  (The government does not include proprietors and partners of unincorporated businesses.)

Grapevine

• 38,339 employees

Southlake

• 14,246 employees

Roanoke, Trophy Club and Westlake

• 9,811 employees

Keller

• 7,589 employees

Colleyville

• 5,453 employees

County Business Patterns data also includes annual payroll made by reporting businesses.  In 2005, the annual payroll of the 4,500 plus businesses of the greater Southlake market totaled $2.6 billion which includes all forms of compensation to employees.

Grapevine

• $1.1 billion

Southlake

• $645 million

Roanoke, Trophy Club and Westlake

• $481 million

Keller

• $219 million

Colleyville

• $164 million

By making a simple calculation, one can also find the average compensation per employee received by employees working in this market.  Note that this statistic is different than the average income per resident as not all employees of businesses in this market reside in the market.  For 2005, the average compensation per employee was $34,668.

Roanoke, Trophy Club and Westlake

• $48,993

Southlake

• $45,260

Colleyville

• $30,068

Grapevine

• $28,870

Keller

• $28,865

One other useful piece of information gathered from the 2005 County Business Patterns data is a breakdown of industries by community.  The top five industries in each of communities of the greater Southlake market follows.

Grapevine (zip codes 76051 and 76099)

• Retail Trade
• Real Estate and Rental and Leasing
• Health Care and Social Assistance
• Transportation and Warehousing
• Accommodation and Food Services

Southlake (zip code 76092)

• Professional, Scientific and Technical Services
• Retail Trade
• Finance and Insurance
• Construction
• Health Care and Social Assistance

Keller (zip codes 76248 and 76244)

• Professional, Scientific and Technical Services
• Construction
• Retail Trade
• Other Services (except Public Administration)
• Health Care and Social Assistance

Colleyville (zip code 76034)

• Professional, Scientific and Technical Services
• Retail Trade
• Other Services (except Public Adminstration)
• Health Care and Social Assistance
• Construction

Roanoke, Trophy Club and Westlake (zip code 76262)

• Construction
• Professional, Scientific and Technical Services
• Retail Trade
• Wholesale Trade
• Finance and Insurance

 1/ The following zip codes are included in this data: 76034, 76051, 76092, 76099, 76244, 76248 and 76262.

In the 1930’s, the federal government developed and introduced the first U.S. system to classify business establishments based on type of primary business activity.  At that time, our economy was primarily driven by manufacturing.  This system was known as the Standard Industrial Classification (SIC) system and utilized a hierarchical four-digit coding system with ten major categories or sectors; thus many of us are familiar with the term SIC code.

By the 1990’s, economies all around the world had dramatically changed over the past sixty years and governments began discussing the need to make changes in their classification systems. The new structure, introduced in 1997, is also a hierarchical system that utilizes six-digit codes with twenty major categories or divisions; it’s called the North American Industry Classification System, or NAICS.  NAICS groups establishments together based on production processes and is compatible up to the five digit level with the systems used by Canada and Mexico.  Additionally, it’s compatible up to the two digit level with the International Standard Industrial Classification of All Economic Activities of the United Nations.

Now that you know a little about the background, let’s address why a basic understanding of the U.S. business classification system is important for a small business.

First of all, by researching business data using a standardized code, such as the NAICS code, one can find out how many businesses like yours are operating and where they are located.  As an example of a geographically congregated industry, you’re likely to find a high percentage of furniture manufacturers located in North Carolina.  Furthermore, these codes will be helpful in preparing your marketing plan as you need to be able to clearly describe your business, suppliers (if applicable), and competition.  If you operate in the B2B market, you can also use use an industry coding system when describing your target market(s).

Second, one can use this industry data to study trends of past activity to make estimates of what may happen industry-wise in the future.  As an example, if the government had been tracking blacksmiths or manufacturers of buggy whips, one would have noticed a continual decline in these industries.  Two modern examples are the decline we’re seeing in the number of video-rental stores and independent travel agencies.

Third, one can use industry data to compare and contrast basic characteristics within your industry, such as employment (size of business) and full and part-time employment levels.  By visiting www.census.gov you’ll obtain a quick overview of the types of business and industry surveys and reports made available by the U.S. government. 

Fourth, a NAICS code is necessary for a wide range of documents.  Federal and state entities ranging from the U.S. Environmental Protection Agency, the IRS and the Census Bureau will require a business to provide their NAICS code on many of their applications and reports.  Other practical uses include attorneys filing required government documents, banks evaluating loan applications, insurance companies accessing risks and mailing list publishers compiling business data. 

If you’re familiar with the old SIC system given below, you’ll recognize carryover to the new system. The ten categories of the older SIC system are:

1.  Agriculture, Forestry and Fishing
2. Mining
3. Construction
4. Manufacturing
5. Transportation, Communications and Public Utilities
6. Wholesale Trade
7. Retail Trade
8. Finance, Insurance and Real Estate
9. Services
10. Public Administration 

The twenty categories and the corresponding first level two-digit codes of the newer NAICS system are: 

• 11         Agriculture, Forestry, Fishing and Hunting
• 21         Mining, Quarrying, and Oil and Gas Extraction
• 22         Utilities
• 23         Construction
• 31-33    Manufacturing
• 42         Wholesale Trade
• 44-45    Retail Trade
• 48-49    Transportation and Warehousing
• 51         Information
• 52         Finance and Insurance
• 53         Real Estate and Rental and Leasing
• 54         Professional, Scientific, and Technical Services
• 55         Management of Companies and Enterprises
• 56         Administrative and Support and Waste Management and Remediation Services
• 61         Educational Services
• 62         Health Care and Social Assistance
• 71         Arts, Entertainment, and Recreation
• 72         Accommodation and Food Services
• 81         Other Services (except Public Administration)
• 92         Public Administration

For those of you who live in the greater Southlake, Texas area, here are highlights by industry (utilizing NAICS divisions) of businesses in this market as published in the 2005 County Business Patterns.  In 2005, 4,563 establishments were reported in the greater Southlake market based on a compilation of data for the seven zip codes in this market.  Roughly 14.7 percent of all businesses were involved in Retail Trade, 13.5 percent were involved in Professional, Scientific and Technical Services and 9.4 percent were classified in the Health Care and Social Assistance division.

If you would like to learn more about using NAICS codes to make your marketing efforts more profitable, please contact Kate Barlow at KGB Strategic Marketing Solutions. 

Here’s an easy way to research the number of businesses like yours within a zip code or county.

The U.S. Census Bureau produces a very useful publication called County Business Patterns that is found online and is FREE! 

This resource provides data on number of establishments, number of employees, annual payroll, and number of establishments by employment size.
 

For an individual business, the significant feature of this data is the industry specific information.   The current series is available by year for 1998 through 2005; thus one can learn how his/her industry has evolved during recent years.

The federal government uses a hierarchical system called NAICS, or North American Industry Classification System, to categorize businesses.

At the first level, there are 20 divisions and each is further subdivided. As an example, category 44-45 includes Retail Trade.

• 448 is Clothing and Clothing Accessories Stores
• 4481 is Clothing Stores, and is further subdivided into a six-digit level
• Men’s Clothing (448110), Women’s Clothing (448120), Children’s and Infants (448130), etc.

A business plan basically states how you plan to run your company–what are your goals, how much money it will take to achieve your goals and what activities you’ll perform to achieve your goals. Most often, a marketing plan is a component of a business plan. Marketing plans often stand alone but should always support and be closely linked to a company’s business objectives.

Representatives from organizations that plan to lend you money or invest in your business require a business plan.  They want to know how much money will be needed and how well you’ve prepared for launching this business.  

The preparation of a business plan will likely force you to analyze items that are unfamiliar and/or uncomfortable such as a realistic estimate of potential income, accounting issues if you don’t have a financial background and marketing issues if you don’t have a marketing background.  One often finds that by having to write plans on paper, we can be better prepared for situations that arise, both negative and positive. 

A marketing plan contains information about your industry, your competitors, and your company’s products, marketing objectives and strategies, as well as how you will measure the success of your marketing activities. It describes all the marketing activities you’ll perform during a specified time period (usually one year). You’ll also include any background information and research results you used to select those marketing activities. Finally, you’ll document the costs associated with your planned marketing activities as well as the measurements you’ll use to determine success.

Over 2740 homes were sold in the Greater Southlake market in 2007.  Here’s a city-by-city breakdown.

 Colleyville

• 461 homes sold which is a 6 percent decrease from 2006
• Median price of $450,000 which is 11 percent greater than 2006
• $135 per square foot price
• 60 average days on the market

Grapevine

• 570 homes sold representing a 14% decrease from from 2006
• Median price of $220,000 which is 2 percent higher than 2006
• $103 per square foot price
• 45 average days on the market

Keller

• 921 homes sold which is a 13 percent decline from 2006
• Median price of $284,950 which is an 8 percent increase from 2006
• $107 per square foot price
• 64 average days on the market

Southlake

• 598 homes sold representing a 4 percent decrease from 2006
• Median price of $527,450 which is a 7 percent increase from 2006
• $147 per square foot price
• 71 average days on the market

Westlake

• 193 homes sold for a 18 percent decline from 2006
• Median price of $260,500 which is 11 percent higher than 2006
• $145 per square foot price
• 68 average days on the market

All five communities experienced a decline in home sales and an increase in the median price from 2006.  In total, 11 percent fewer homes were sold. 

• Data for Trophy Club is not available. 
• This information was published in the January 18, 2008 issue of The Dallas Morning News.

 As a small business owner/operator/manager, you may periodically need to attend public meetings at which important decisions impacting your business are discussed and made.  If you live in the greater Southlake market, here are the meeting times for the primary governing body in each of the local communities.   

Colleyville: City Council meets first and third Tuesday of each month, 7:30 p.m., at Colleyville City Hall, 100 Main Street. 

Grapevine: City Council meets first and third Tuesday of each month, 7:30 p.m., at Grapevine City Hall, 200 South Main Street. 

Keller: City Council meets first and third Tuesday of each month, 7 p.m., at Keller Town Hall, 1100 Bear Creek Parkway. 

Southlake: City Council meets first and third Tuesday of each month at Southlake Town Hall, 1400 Main Street.  Work session begins at 5 p.m. followed by the regular agenda. 

Trophy Club: Town Council meets first and third Monday of each month, 7 p.m., Svore Municipal Building, 100 Municipal Drive. 

Westlake: The Mayor and the Board of Alderman meet the second and fourth Monday of each month, 7 p.m., at Westlake Town Hall, 2600 J. T. Ottinger Road. 

Coupons are a great small business promotional tool for many reasons.  First, coupons are ideally suited for both existing and prospective customers.  Some potential objectives may be to increase awareness of your business, generate traffic to your store or website, increase sales, especially during a slow season, or stimulate trial of a new product / service.  Second, unless you’re printing thousands, coupons are fairly inexpensive to print as they can be created in-house with desktop publishing software.   

Third, as the printer, you not only control the value of the coupon but also its lifespan.  You get to choose whether the coupon is offering a free product, a percentage discount, a volume discount, or the bearer will be given a gift with his/her purchase.  Fourth, while you can freely give them away or pay to have them distributed, there are endless ways to dispense.  Coupons can be directly mailed in various forms such as postcards or coupon books / decks, or within invoices.  Other options include distributing them within newspapers and magazines or from your website.  Or one may leave them on windshields, front doors, or counters. Lastly, you may attach them to a product of a current sale, i.e. Pizza Hut boxes, or include them within gift bags. 

The fifth reason is that coupons give your business an opportunity to establish alliances with other establishments within your shopping center or with a related product or service provider.  If you’re in the carpet cleaning business, perhaps a window cleaning operation could give away your coupons.  Or, if you’re in the dry cleaning industry, perhaps a shoe repair or small boutique might want to align with you.  And finally, your coupon can be made to look like a miniature version of your print advertisement.  By increasing exposure, prospects and customers are more likely to remember your business as you build familiarity. Plus, according to Jay Conrad Levinson, coupons can make an advertisement up to 26 percent more effective. 

In 2006, $331 billion worth of coupons were distributed and $2.6 billion were redeemed. 

• Overall, in-store coupons garnered the highest redemption rate at 34 percent. 
• Eighty-nine percent of 2006 coupons were distributed through newspapers in some form of an insert, and almost 93 percent of all 2006 coupons were sent directly to the home.
• Two recent trends are shorter expiration dates and lower face value. 
• Source: Donna L. Montaldo on About.com and CMS.com

I want to close this brief article by sharing three useful tips. 

1. First make sure your coupon clearly states all your important contact information such as address, phone number, website, etc.  What good is the coupon if they don’t know where you’re located, can’t call you to find out your hours, or gather information about your specific product lines, service policies or warranty programs?
2. Second, make sure your coupon is coded so you’ll know how and when it was distributed.  This information will be helping in determining the effectiveness of your attempt through tracking.  One coding method is to use a letter for the type of distribution, such as N for newspaper, R for other retailer, and M for mail.  By using numbers, you can track in what month they were distributed.
3. Third, find out if your competitors are using coupons.  You’ll want to know how they distribute their coupons, what discount they’re offering, and how often are they distributed. 

If you would like to learn more about other low cost marketing efforts, please call Kate at 817-488-2761.  Our first hour long consultation is always free. 

The majority of establishments listed below offer some type of meeting or conference facility appropriate for focus groups, networking meetings, or other types of marketing events.  As an example, marketing experts often recommend using an off-site or “neutral” location when conducting focus groups involving prospects or customers. 

I’ve also provided an approximate location and the number of rooms for each establishment.  Within the greater Southlake market (Colleyville, Grapevine, Keller, Southlake Trophy Club and Westlake), the total number of hotel rooms exceeds 3700.  To my knowledge, there are no hotels, motels, bed and breakfasts or extended stay hotels in either Colleyville or Keller.

Grapevine

Amerisuites DFW Airport North

• across from Grapevine Mills Mall
• 125 rooms

Baymont Inn & Suites

• north of SH 114 / SH 121, east of Main Street
• 101 rooms

Comfort Suites

• east side of SH 121, north of I-635
• 96 rooms

Embassy Suites Outdoor World

• west side of SH 121, north of I-635 and adjacent to Bass Pro Shops
• 329 rooms

Fairfield Inn & Suites

• east side of SH 121, north of I-635
• 73 rooms

Gaylord Texas Resort & Convention Center

• north side of SH 26, west of Grapevine Mills Mall
• 1511 rooms

Hilton DFW Lakes Executive Conference Center

• north side of SH 26, west of Grapevine Mills Mall
• 393 rooms

Holiday Inn Express Hotel

• south side of SH 114 / SH 121, west of Main Street
• 95 rooms

Homewood Suites

• across from Grapevine Mills Mall
• 105 rooms

Residence Inn by Marriott

• south side of SH 26, close to Bass Pro Shops
• 133 rooms

Springhill Suites by Marriott

• across from Grapevine Mills Mall
• 111 rooms

Super 8 DFW Airport North

• south side of SH 114 / SH 121, east of Main Street
• 100 rooms

Southlake

 Hilton

•  within Southlake Town Square, close to Barnes & Noble and Harkins Theatre

• 248 rooms 

Trophy Club

Value Place Extended Stay Hotel

• north side of SH 114
• 121 rooms
• does not offer any type of meeting or conference space

Westlake 

Marriott Solana

• south side of SH 114, off Kirkwood Boulevard
• 198 rooms and undergoing expansion 

 According to statistics from the Texas Real Estate Commission, there are almost 400 brokers and over 1400 real estate agents in the greater Southlake market. 

Brokers by Zip Code

• 76051/76099 (Grapevine), 93 

• 76248/76244 (Keller), 62

• 76092 (Southlake), 102

• 76034 (Colleyville), 94

• 76262 (Roanoke, Trophy Club, Westlake), 47 

Agents by Zip Code

• 76051/76099, 304
• 76248/76244, 105
• 76092, 793
• 76034, 197
• 76262, 46

When you add 2008 population into the equation, here are the number of residents per agent by zip code. 

• 76051/76099, 150
• 76248/76244, 359
• 76092, 32
• 76034, 112
• 76262, 303 

One of the most common and effective marketing strategies when operating within a highly competitive market is to differentiate yourself from your competitors by focusing on one or two niche markets. 

Goals and priorities for niche marketing may include:

1. Completing more transactions
2. Generating more referrals
3. Increasing cooperation with allies
4. Combining marketing tools
5. Placing greater focus on details such as devising highly personalized messages and polishing your marketing script/message
6. Making greater use of your database.

Three general steps in creating a niche are:                                         

1.  Studying your business’ strengths
2.  Identifying market segments benefiting from your product, service or expertise
3. Developing strategies to reach them based on identified characteristics. 

One example is the highly competitive local real estate market.  As examples, a realtor might have a niche based on geographic area,  housing type, stage of life, or housing value.

Take the time to look at businesses within your industry but located outside your geographic area for ideas!

If you need more information about niche marketing, please contact me at your earliest convenience.  The initial consulation is always free unless we address a specific project.  I can be reached at 817-488-2761 or via email: kgbmarketing11@verizon.net.