Understanding the Viability Score
What Is It?
The Viability Score is a number from 0 to 100 that summarizes how favorable a local market appears for the industry you selected. A higher score indicates stronger indicators of opportunity; a lower score suggests caution.
How Is It Calculated?
The score is generated by our AI and considers multiple weighted factors, including:
- Market Saturation — The ratio of existing competitors to the local population. Fewer competitors relative to demand pushes the score higher.
- Population & Income Trends — Historical growth rates (CAGR) for population, households, and median income over several years.
- Industry-Specific Demand Markers — For example, the percentage of children under 5 for childcare, or pre-1980 housing stock for home services.
- Business Churn — The rate at which businesses in the area have opened and closed over the past three years.
Risk Thresholds
70–100 (Low Risk): Strong market indicators. The data suggests healthy demand relative to supply.
40–69 (Medium Risk): Mixed signals. Some factors are favorable, but others warrant deeper research before committing capital.
0–39 (High Risk): Significant headwinds detected, such as market saturation, population decline, or low household income relative to industry needs.
⚠️ Important Disclaimer
The Viability Score is an informational tool based on publicly available data and AI analysis. It is not financial, legal, or investment advice. Market conditions change frequently, and no automated score can capture every variable that affects business success. Always conduct your own due diligence and consult qualified professionals before making business decisions.