With these groups in mind I decided using the U.S. Census Bureau information would be the most efficient and beneficial way of sorting through the needed data and help with creating a business report for my partners. Here is the report:
Colorado Springs, Colorado
Date: 22 September, 2015
To: Jeff Bezos, Business Partner
Elon Musk, Business Partner
Larry Page, Business Partner
John Dangermond, Business Partner
From: Nicholas Berg
Subject; Proposed Business Plan for Colorado Springs
Here is the report requested on 10 September 2015. It focuses on the primary groups you all requested and potential opportunities in Colorado Springs. This report gives potential business ideas based on population and demographic data provided publicly from the U.S. Census Bureau.
Thank you all for the opportunity and entrusting me with doing the research needed to move forward in finding a profitable business that not only fits the community but our current business portfolios.
If you have any questions feel free to reach me by phone or email. I would be more than willing to sit down with each of you and discuss my plan further if need be. I wish you all good luck on your other projects and look forward to your feedback.
Proposed Business Ideas for Colorado Springs, Colorado
Presented to
Jeff Bezos
Elon Musk
Larry Page
John Dangermond
Prepared by
Nicholas Berg
22 September 2015
Summary
Last time we met we discussed possible locations for our next business venture and decided on Colorado Springs, Colorado as a prime location. You all requested I gather information focusing on a couple target demographics. These include, the young children population, retirees and the growing Hispanic population coming to Colorado Springs and the state of Colorado as a whole. I have gathered information and formatted the data in a way we can sort through it and progress towards finalizing a business plan in the most efficient way.
Findings
Using the U.S. Census Bureau's website I was able to find some information that can be used to help decide what target demographic we should focus on. Here is an age pyramid breaking down the age makeup of Colorado Springs.
Findings
Using the U.S. Census Bureau's website I was able to find some information that can be used to help decide what target demographic we should focus on. Here is an age pyramid breaking down the age makeup of Colorado Springs.
Looking at the pyramid you can see there is a large number of children (0-14) and the age group with the highest percentage of the population is young adults (20-30) this is an age group that is currently growing families and actively having children so having a large population in that range is great for growing the youngest age group as well. The retiree age group (65+) is a much smaller group but there is a large population of people in the (50-54) range so in roughly 10-15 years the retiree population will grow.
Something else we have to consider is the dependency ratio for not only Colorado Springs but also the state of Colorado.
Colorado Springs
100*(87715.83+46412.745)/294657.06 = 45.52
Colorado as a State
100*(1028985.129+588722.835)/3501621.036 = 46.20
Looking
at the results above you can see that the dependency ratio for the City of
Colorado Springs and also the State of Colorado are similar (<1%)
difference. The dependency ratio shows you how many people are dependent on the
people of working age per 100 people. So in the case of Colorado Springs
roughly 45 people out of 100 are dependent of a member of the working age. If
this number gets too large it could potentially be bad as it means there might
be an overwhelmingly high number of people for the working age to take care of. There needs to be a balance, if the working age has to take care of more people than it can handle there may not be a healthy enough economic situation to have a profitable business.
According to the American FactFinder website as a country the United States is
at a dependency ratio of 59.1:100 so both Colorado and Colorado Springs is much
lower than the country as a whole.
The next important set of data we have to consider is the location quotient or LQ. The LQ for an area is important because it compares our subject area to the rest of the country.
| |
Total Population
|
Total Pop.
0 -14
|
Percent Pop.
0-14
|
Total Pop. 65+
|
Percent Pop. 65+
|
Total Hispanic Pop.
|
Percent Hispanic Pop.
|
Total White Pop.
|
Percent White Pop.
|
|
Colorado Springs
|
425,805
|
87,715.83
|
20.6
|
46412.745
|
10.9
|
70875
|
16.6
|
340974
|
80.1
|
|
El Paso County
|
634423
|
137035.37
|
21.6
|
65979.99
|
10.4
|
97572
|
15.4
|
515313
|
81.2
|
|
Colorado
|
5119329
|
1028985.13
|
20.1
|
588722.84
|
11.5
|
1064009
|
20.8
|
4301096
|
84.0
|
|
United States
|
311536594
|
61061172.42
|
19.6
|
41745903.6
|
13.4
|
51786591
|
16.7
|
230592579
|
74.0
|
LQ (Pop.
0-14) Co. Springs = 20.6/19.6=1.05 County = 21.6/19.6=1.10 State =
20.1/19.6=1.03
LQ (Pop.
65.+) Co. Springs = 10.9/13.4=.81
County =10.4/13.4=.78 State =11.5/13.4=.86
LQ (Hispanic)
Co. Springs = 16.6/16.7=.99 County = 15.4/16.7=.92 State =20.8/16.7=1.25
LQ (White) Co. Springs = 80.1/74=1.08 County =
81.2/74= 1.10 State = 84/74=1.14
Over 1.0 represents higher than the country and below 1.0 represents lower than the country as a whole. Looking at the above data we can see that the (0-14) age range is of higher percentage than the countries at the city, county and state level. With that being said, we can also see that the (65+) range is below the country because it is less than 1.0. Regarding the Hispanic population, at the city level it is just below the country at .99 but as a state Colorado has seen explosive population growth at 1.25.
We can also look at the LQ for the Service Industries that already exist in Colorado Springs compared to the entire state of Colorado.
Service
Industries - State
|
Percent
of total state Industries
|
Service
Industries – Co. Springs
|
Percent
of total Co. Springs Service Industries
|
Co.
Springs location quotient
|
1 Finance
|
1.47
|
1 Finance
|
.95
|
.65
|
2 Professional
|
11.71
|
2 Professional
|
11.41
|
.97
|
3 Educational
|
23.17
|
3 Educational
|
25.25
|
1.09
|
4 Arts
|
38.79
|
4 Arts
|
38.52
|
.99
|
5 Other
|
10.95
|
5 Other
|
10.97
|
1.00
|
6 Public Administration
|
5.48
|
6 Public Administration
|
8.65
|
1.58
|
Based on this information, out of these sectors we can see that the Education, Other, and Public Administration Industries are only slightly more concentrated then the states. The rest of the Industries are below the states.
Conclusion
Based on what we know regarding the age, culture, and service industry breakdown for the city of Colorado Springs I believe we should move forward targeting the younger age demographic but also not ignore the fact the Hispanic population in the state has exploded and there will inevitably be a portion of that population coming to Colorado Springs. The age pyramid highlights the large population of young people and young parents while the dependency ratio shows Colorado Springs has a higher amount of children relative to the rest of the United States and as a state Colorado has a steadily growing population of Hispanic people. As far as the target service industry. The Educational and Art/Entertainment industry is the bread and butter of Colorado and with Colorado Springs that is no different. I'm proposing we launch a State-of-the-Art Multi-Cultural Children's Indoor/Outdoor Museum. This involves entire families, grows cultural awareness as the Hispanic population continues to grow in Colorado Springs and also involves two service industries - Art and Education. Children's Museums may even tap into the retiree population as they may take their families and Grandchildren there when visiting.
Reasons to Not
In the next 15 years a large number of residents in Colorado Springs will hit retirement age. It is unknown whether this population will stay in the area or head for other, more popular destinations. If they were to stay in the area there is huge potential for business opportunities involving this population of the city. There is just too many unknowns at this point to focus on that now. There is also already a Children's Museum in Colorado Springs but not that involves the multicultural facets I'm proposing and with your backing our museum will exceed the current facility easily.
Sources:
American FactFinder. (n.d.). Retrieved September 22, 2015, from http://factfinder.census.gov
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