Who's No. 1? Nevermind what the rankings say—which city is best-suited to your business's needs?

Entrepreneur, Dec, 2004 by Judith Potwora

"BEST CITY" RANKINGS ARE all the rage, but how relevant--or accurate--are they? Experts say these rankings are aimed more at large corporations. "They're interesting, and they certainly reflect truths," says Susan M. Wachter, co-director of the Penn Institute for Urban Research at the University of Pennsylvania. "But do they reflect the truth for your company? Not necessarily." Wachter says entrepreneurs should decide what drives their location decision, such as tax breaks, customer base or employment base.

Employment base was key for Bill Watkins, (50). When he and his wife, Vera, set up Marena Group, a manufacturer of post-surgical compression garments, they needed employees with sewing expertise. Watkins says his best sources weren't top city lists, but economic development officials and chambers of commerce, which provided information about where sewing plants had recently closed. Watkins' research led him to open the plant near his Atlanta home, where sewing workers were available and property taxes were low. The company now has 45 employees, annual revenue of about $8 million, and was named the state's top small-business exporter in 2001.

For Wendy Woods, customer base was the driving force when she and Piper Lunsford, 41, launched Research Triangle Park, North Carolina, eatery Piper's in the Park. The restaurant, which has $1 million in revenue, does a brisk business serving local tech companies, as well as dinner catering. "This is a thriving area," says Woods, 45. This year, community contacts helped her pinpoint an opportunity for a second restaurant in Durham, where Duke University is adding on to its engineering school.

Business locator research is a booming business. Consultants charge $10,000 and up for research, but you can get detailed demographics for free or for cheap. For example, www.demographicsnow. com is a subscription service with free online samples; www.sitereports.com offers demographic reports; and www.esribis.com publishes a free booklet, Evaluating Population Projections: The Importance of Accurate Forecasting. Commercial realtors can also provide an overview of area leasing rates, property operating costs and demographic stats.

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