Searching for potential markets

[Pete Morici]

I was contacted recently by an investor who currently owns several ongoing businesses. He is quite familiar with the Drain Cleaning/ Plumbing industry.

He challenged me to find an area or local market anywhere in the country where he could make a significant investment in a new Plumbing/Drain cleaning company. I will tell you that in light of rising unemployment, the foreclosure fiasco and the borderline recession we are in - it's not easy to find "the best area."

Now... you can argue that you can do business anywhere - right? But that's not how investors think. It's all about numbers, exposure, potential market opportunities, return on investment and creating resale value.

After a tough week of developing decision-making search criterion and then doing the research itself, I believe I have found a potential "diamond in the rough." I'm sorry, I can't share the area. But, I will tell you (on paper) it looks so good, I might just move there myself.

So, here's a question for you to ponder.

How would you go about finding an area with the best potential in the drainage industry in the current economy? What would be on your list?

[txshriner]

I have been more successful than I ever dreamed and in the pumping business have considered myself sharper than the average bear. I have been one of those that thought I could duplicate my success in just about anywhere But this is not true exactly as you say. 90 miles from me is an area with bunches of communities on septic, 2 college campuses, a military base and plenty money in the area! Best of all Very few people in the pumping & repair business. 3 years ago I began doing business there. I've done descent at best, if I weren't doing expensive repair work nobody else is interested in doing I would say the area was a failure! I did this as a trial because I have considered starting up in another area I would consider my second home/ semi retirement operation and based on what Ive done here it is certainly easier said than done.

[wmcisewer]

At this day and age, I can not say what area is best. We cover 2 states and have gone further. We are on the Georgia Florida line at I 75 and last week we went ten miles of the Alabama line to clean a 4" sewer.
All areas need drain cleaners, question is what area pays the most. If I knew that I would be.... well I would not be traveling all over.... or would I