Lucernex expert Mike Nuzum (see Mike’s management summary here) discusses the site approval process for companies developing revenue producing locations.
To any company developing and opening new locations, the Site Approval Process is a very important task requiring not only very good analytic information about markets and market areas, but also a network of real estate professionals managing the process.
Some companies do all of the real estate site selection with in-house development professionals while others use an outsourced network of commercial brokers; some companies use a combination of both. No matter who is doing the site selection, it is a lengthy process to accumulate the numerous types of information and documents required to make a decision.
This process is typically accomplished by compiling various aerial photos, site surveys, zoning requirements, etc. for the real estate professional responsible for the specific market or region. It is not uncommon for organizations to have monthly real estate meetings to make site decisions. To prepare for these meetings all of the paper-based details collected on the site (and it can be hundreds of pieces of paper) are duplicated to form a site approval package which is then presented along with many other packages at the monthly site approval meeting.
In most cases the site process takes weeks or months with many pages of documents and drawings followed by a period of 4 or 5 days to prepare the final site approval package and make copies for all real estate meeting participants.
The cost of this process is more than just paper, printing and copying – it’s lost opportunity.
I spent over thirty years doing real estate development with yellow pads and manila folders. In that time we figured out that establishing repeatable processes saved time and allowed to secure locations faster. Over the past 10 years, as technology has been overlaid on the site approval process, the benefits of establishing repeatable processes have increased as a good repeatable process can more easily be put into technology, speeding up the process even more. The market has evolved from one-off processes on yellow pads to repeatable paper processes to best-of-breed technologies cobbled together and finally to fully integrated Location Performance Management solutions and the time required to secure a site has been vastly reduced with each step.
Any company not using an integrated technology solution to manage the site approval process is putting themselves at a huge disadvantage and will find themselves losing prime locations to companies that use this technology.
Shameless plug
With Lx IWMS the site approval process can be shortened from months to a few short weeks. All site approval data, documents, maps and demographics can all be collected and managed in one place including conducting complete market geo-analysis online. To prepare the site approval package all you need to do is open up your document folder, click on the site approval package, click the items on the document index you want printed and your package is prepared in one format in the time it takes to print it.
Not only can you save weeks of time but all your information is in one place for all members to view. As an added benefit you now all have access to the information in one place on one platform for all members to view. This means your site approval meetings can be conducted via the internet, again saving time and travel expense. In addition you no longer have the need to print out several sets of drawings and leases and ship them to the various offices involved in the process. Again you save more time and expense.
We have examples of customers who have reduced the site approval process from several months down to just 2 or 3 days. They are now leaders in the retail and restaurant industry due to their success in securing the best locations.