How the Gap Score works

The Gap Score is a 0–100 number that reflects how underserved a business category is in a specific ZIP code. A higher score means more unmet demand relative to existing supply — not that a business will succeed. It is a signal to investigate, not a guarantee of profitability.

The score combines nine factors drawn from public data and live competitor searches. Each factor is weighted by its relevance to the business category being scored — the weight profile for a laundromat differs from the weight profile for a restaurant. Specific weights are proprietary.

• Google Places API — used to count competitors, measure distance to the nearest competitor, and retrieve average star ratings and review counts for existing businesses in the category. Searches are centered on the ZIP code centroid and use a fixed search radius appropriate to the category.
• U.S. Census Bureau — 2022 ACS 5-Year Estimates — provides population, median household income, housing unit counts, and other demographic variables for each ZIP code tabulation area (ZCTA). These are survey estimates with margins of error, not exact counts.
• Brave Search API — used to produce a demand signal score by searching for local discussion and demand indicators for the business category in the area. This is the most directional of the three sources and carries the most uncertainty.

Each result carries a confidence level based on the volume and recency of competitor data retrieved:

• Verified data — four or more competitors found in Google Places. The competitor count, distance, and rating signals are well-supported.
• Early signal — Google Places returned some results but fewer than four, or the match certainty for the category search is lower. Treat as directional.
• Limited signal — very few or no Google Places results found. The score leans more heavily on population and income data and less on observed competitor behavior. Higher uncertainty.

A low confidence level doesn't mean the opportunity is weak — it means the data is thin. Some businesses are genuinely absent from Google Places (sole proprietors, informal operators). Always verify with a local search before drawing conclusions.

Competitor data from Google Places is cached for 24 hours per ZIP code and category combination. Searching the same ZIP twice within 24 hours returns the cached result. Census data reflects the 2022 ACS 5-Year Estimates and is updated when a new vintage becomes available (typically annually).

• Google Places coverage is uneven. Some categories and regions have more complete listings than others. Informal or cash-only businesses often have no Google presence — the data sees them as absent even when they exist.
• The score doesn't model startup cost, margins, or regulation. A high Gap Score in a heavily licensed category (healthcare, childcare, financial services) doesn't account for the regulatory burden. The "Watch out for" section on each result flags category-specific risks.
• Urban ZIPs may produce misleading results for some categories. A category like gutter cleaning may show a supply gap in a dense city ZIP where the underlying demand (single-family homes with gutters) is genuinely low. Population density is included in the model but doesn't fully capture property-type mix.
• Census data lags reality. The 2022 ACS 5-Year Estimates reflect conditions from 2018–2022. Fast-growing or rapidly changing neighborhoods may be under- or over-stated.
• The demand signal is the least reliable axis. Web search results for local demand are noisy. This axis is weighted lower for most categories but it contributes to the score.

The Gap Score is not financial, legal, tax, or professional business advice. It surfaces data signals — it does not tell you whether a specific business will succeed in a specific location. Before acting on any result, verify local zoning, licensing requirements, lease availability, and market conditions independently, and consult a qualified advisor.