Business is predicted with mathematics


Do you want to open a business? First you need to calculate the Q factor! The French physicist Pablo Jensen, of the Normal School of Lyon, has examined more than 8, 500 retail stores in the French city, to assess how much the area in which they are opened affects business. He discovered that exercises with related activities tend to arise close to each other. For example, butchers and delicatessens on one side and laundries and bookcases on the other. As if similar stores (by type of product) attracted each other, while they tended to repel each other.

Applying to this analysis a mathematical model, taken from the theory on magnetism, Jensen calculated what he called the Q factor. A kind of score, given to each store, which is based on the average of similar and repellent activities in the same area.

For example, according to his calculations a series of bakeries, among those opened between 2003 and 2005, went bankrupt because they had a Q factor that was too low compared to other bakeries, due to a bad location in the area.

According to Jensen the Q factor serves to predict the "fortune" of a business. And even the Lyon Chamber of Commerce has decided to adopt the system to help new entrepreneurs.