There's a Map for That
Wednesday, May 26, 2010
Written by Gregg Gothreaux
Whether you are a start-up, looking to expand or trying to woo a national client to Acadiana, LEDA can provide custom demographics, competitive analysis and industry research. One of the most common formats for this data is maps.
As things begin to look up for the economy, it’s time to start thinking about your business plan moving forward, if you have not done so already. Hopefully you followed the advice I offered in my column last year and kept doing what made you successful in the first place instead of cutting back. Being proactive and finding your niche in the market is always a smart idea in good times, and especially in not so good times. This is where LEDA’s Information Services Department can help. Through the creation of customized reports, maps and data, LEDA’s researchers can supply you with the information you need to make important business decisions.
With access to data points ranging from retail sales to employment figures, LEDA’s team of researchers can conduct customized market research for existing and prospective Lafayette Parish businesses. Our researchers can also gather competitor and consumer data to assist in the growth and development of your company. Some of the most-requested research services include:
Demographics — up to 30 miles from a single point or any standard U.S. geography
Economic Indicators — relevant statistics
Traffic Counts — local and state
Aerial Photography — 2009 and historic imagery
Industry Research — custom-built lists and maps of competitor/vendor/customer data
Custom demographics, competitive analysis and industry research may be used by start-up businesses to substantiate a business plan, by a company looking to expand to a second location, or by a real estate developer trying to woo a national client. One of the most common formats LEDA provides this data in is maps.
Information Services researchers use Geographic Information Systems technology to bind requested data to maps on a local and regional scale. The result is an organized illustration that translates and supports the data that researchers provide in report form. Different size options are available, and clients may request anything from a JPEG image of the map, for use in presentations and reports, to a poster-sized print. These maps are often the easiest method for analyzing and comparing data that is critical in making the best decisions for business development.
The most common mapping request is competitor location. People want to know where their competition is or isn’t; and when that information is paired with available properties or demographics we can help them see the big picture. Maps 1 and 2 are examples of this. In the first map, LEDA noted all convenience stores and banks within Lafayette Parish. The second map shows the location of local fitness centers compared to several retail spaces a client was considering for a 24-hour fitness center location. From this map, our client can see which locations may be most practical or profitable and can make an educated decision about selecting a location.
The maps can be created with multiple layers of data that can be added or taken away as needed to best illustrate the project. For example, either of these maps could also include traffic counts at specific intersections as well as population density of males 18-44, or families with children, residents age 60 and older, or whatever the target market is. Having the ability to visualize his target market between possible locations, while identifying major competitors, will allow our client to make confident decisions.
The third map is an example of a more specialized map that LEDA can produce. The map illustrates the concentration of business in Lafayette Parish. Our research staff mapped the number of businesses per square mile by census tract to demonstrate that downtown is the most concentrated area of businesses in the parish. LEDA’s manager of downtown business development is able to use this map to attract new businesses to the downtown district. These are just three examples of the individually customized maps you can request for your business.
A new service LEDA began offering this year is producing economic impact studies for specific projects on a case by case basis. An economic impact study identifies the economic contribution an organization, company, or project makes to the community. Based on the money put into the economy directly, multipliers are used to measure the additional effects through the interdependence of sectors within the community. These multipliers will vary from region to region; they assume a certain dollar spent gets spent again and again within the same community. Multipliers are often called estimators of the ripple effect. Each economic impact study quantifies the amount of output, income and jobs that are generated by the company, project or organization. It is the ultimate goal of each study to show the return on investment in order to create awareness, increase interest, get a foot in the door, or even break down community barriers.
LEDA can’t offer a crystal ball and tell you what is best for your business. What we can offer is the most complete and accurate data available. And at the right price — free. That’s definitely good for business.
Gregg Gothreaux is president and chief executive officer of the Lafayette Economic Development Authority.
Get Incentivized
Written by Gregg Gothreaux
Wednesday, April 28, 2010
More often than not, business owners don’t take advantage of the tools that are out there to lessen their tax burden.
What if businesses had an opportunity to save thousands of dollars on taxes? Sound too good to be true? It’s not. With the federal and state incentives currently in place, businesses have the potential to save thousands of dollars with forethought and planning, but most are letting the opportunity slip away.
Here at LEDA, we’re proud to play a role in Lafayette’s economic growth. One way we do this is by providing businesses with information on incentive and tax credit programs that have the potential to save your business tax dollars. LEDA staff meets with more than 500 unique businesses each year, part of those visits includes a discussion of available business incentives. We also provide the most up-to-date incentive information to businesses looking to open or relocate to the area. No one likes taxes, but more often than not business owners don’t take advantage of the tools that are out there to lessen the tax burden on their business. For that reason, we try to keep areas businesses informed about the incentives that are available.
Whether a business is starting up, expanding, or relocating operations to Lafayette Parish, there is a broad range of incentives including tax abatements, tax credits and financing assistance that can be accessed. These incentives and credits were put in place to help stimulate business investment in the state and to foster growth in legacy and emerging industries, such as energy and digital media respectively. These programs also help to strengthen the backbone of our economy — entrepreneurs and small business.
Along with your tax adviser, LEDA can help you determine which incentives might be appropriate for you. For example, new businesses or expansions are a natural fit for Enterprise Zone or Quality Jobs because of the programs’ job creation requirements. Currently, the rules for Enterprise Zone and Quality Jobs are undergoing review; however, the benefits will remain the same for qualifying projects. The state’s Advance Notification form is the first step when applying for either of those programs as well as the Industrial Property Tax Exemption and Restoration Tax Abatement Programs.
Enterprise Zone and Quality Jobs
If you’re making a considerable investment in a physical structure and you might increase your employee base, we encourage you to look at the Enterprise Zone or Quality Jobs programs, as they provide for tax credits for eligible new hires as well as a 4-percent state sales tax rebate on taxable expenditures such as building materials and fixtures. In the city of Lafayette, there were approximately 2,247 commercial construction projects (new and additions & alterations) between 2005 and 2010, but only 163 advance filings for these programs.
What does this mean? Simply put, too many businesses are leaving money on the table by not doing the research and making the initial application. This is one time when planning ahead can potentially save your business thousands of dollars because any work performed prior to filling out and submitting the form cannot be counted toward the project. You don’t even have to provide exact and final numbers on the form — just estimates of investment costs, employment and payroll. Your final incentive valuation will be calculated at the designated time based on the actual project outcome.
What kind of savings can these incentive programs actually produce? With the Enterprise Zone Program, if you own a business with 20 employees and hire just two new employees, one of whom meets the program requirements, you can receive a total, one-time tax credit of $5,000, or $2,500 per new job/hire. If you’re also building an expansion and the taxable cost of your construction project, including materials used and permanent machinery and fixtures, is $500,000, you could also receive a $20,000 rebate of the 4 percent state sales tax. That’s a total $25,000 tax burden lifted. What business couldn’t use that? The catch is that you must complete the advanced notification form before construction starts or you make the first new hire.
Entertainment Industry Incentives
With The Accelerator housed at LITE gearing up, our growing film industry and momentum from last week’s FiberFête, Lafayette is working to attract and grow new and existing digital media and film production companies to the region. The state has a slate of attractive incentives in place for the entertainment industry. The incentives encourage development of a strong capital and infrastructure base locally for film, sound and digital media productions in order to achieve an independent, self-supporting industry. These incentives were recently updated to be even more competitive with neighboring states.
Louisiana offers up to a 35 percent transferable tax credit for qualifying film projects. The credits are fully transferable, and there is no limit to the amount of incentives that can be earned by a production that has a minimum investment of $300,000. The Interactive Production Incentive offers up to a 35-percent tax credit on base investment and payroll expenditures. There’s no minimum spending to qualify, and credits may be applied to Louisiana tax liability or sold on the secondary market. Finally, Incentives for Music and Sound Recording include a 25 percent rebate related to the production of a sound recording with a $15,000 minimum investment.
Incentives have the power to help turn an idea into a reality for small business owners and entrepreneurs. No matter the size and scope of the project, incentive options should be considered. For a comprehensive list of incentives that may be available for your business, visit www.lafayette.org/incentives. LEDA wants to see businesses succeed across Acadiana. One way we can do that is by continuing to inform business owners about available incentives. But it’s up to you to take that money off the table and put it in your pocket.
Gregg Gothreaux is president and chief executive officer of the Lafayette Economic Development Authority.
The New Energy Movement
To take advantage of federal tax credits and incentives for producing clean energy, LEDA, UL Lafayette and other community partners last year launched the Acadiana Alternative Energy Committee to help develop a viable alternative energy industry in our region.
True Louisiana
Cajun and Creole foods have long been on the national radar, but outsiders are beginning to see our value beyond the kitchen.
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