Every Locatalyze report is built on real data — not guesses. Here's exactly what we analyse, where the data comes from, and how we calculate your score.
The process
Address geocoding
Competitor mapping
Demographic analysis
Rent benchmarking
Financial modelling
AI analysis & verdict
Data sources
Google Maps Platform
Real-time competitor locations, business types, ratings, review counts and operating hours within your analysis radius.
ABS Census Estimates
Population demographics, median income, household size and age distribution aligned to Australian Bureau of Statistics data.
Commercial Rent Database
Suburb-level commercial rent benchmarks calibrated from publicly available commercial property listings and market reports.
Industry Benchmarks
Revenue per square metre, labour cost ratios, COGS percentages and average ticket size benchmarks segmented by business type.
AI Financial Model
Our AI synthesises all inputs to produce the narrative analysis, risk scenarios, SWOT assessment and 3-year projection model.
Market Demand Signals
Category search trend proxies, foot traffic signals and business category growth data used to assess demand in your area.
Scoring system
The Location Score (0–100) is a weighted composite of five dimensions. Each dimension is scored independently then combined into a final score that determines your GO / CAUTION / NO verdict.
30%
weight
Rent Affordability
Rent as a percentage of projected revenue. Below 12% = excellent. Above 25% = poor. This is the single biggest predictor of long-term viability.
25%
weight
Profitability
Net profit margin after all costs. Calculated from your revenue estimate minus rent, COGS, labour and fixed costs.
25%
weight
Competition
Competitor density within 500m, weighted by their ratings and review volume. Fewer strong competitors = higher score.
20%
weight
Area Demographics
Population density, median income and demographic fit for your business category. High-income, high-density areas score higher for premium categories.
Strong fundamentals. Proceed with confidence and conduct final due diligence.
Mixed signals. Viable with the right execution, but specific risks need mitigation.
Significant concerns identified. The risk profile does not support proceeding at this time.
Financial model
Our financial model combines your inputs with industry benchmark data to build a realistic P&L. Here's the logic behind each number.
Monthly Revenue
Estimated daily customers × Average order value × Operating days
Daily customer estimate is derived from foot traffic signals, competitor count and demographic density for your category and location.
COGS (Cost of Goods)
28–35% of revenue
Benchmark varies by category: cafes ~30%, restaurants ~32%, retail ~40%. Based on industry average gross margins.
Labour Costs
25–35% of revenue
Estimated from minimum award rates, typical staffing ratios per business type, and operating hours. Does not include owner salary.
Fixed Costs
Rent + utilities + insurance + POS/software
Your submitted rent plus estimated utilities (~$800–1,500/mo), insurance (~$200–400/mo) and operational software.
Break-even Customers
Total monthly fixed costs ÷ (Average order value × contribution margin)
The minimum daily customers needed to cover all costs. Compared against your projected demand to determine viability.
Payback Period
Setup cost ÷ Monthly net profit
Months to recover your initial investment. Under 12 months is excellent. Over 24 months carries significant risk.
Important: Use as a decision-support tool
Locatalyze reports are designed to help you make better-informed decisions — not to replace professional due diligence. Our revenue and profit estimates are based on statistical benchmarks and AI modelling, not guaranteed outcomes.
Before signing a lease or committing capital, we recommend:
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