Choosing the right location is among the many other aspects of business that every entrepreneur needs to consider. In fact, it is an important key to the success of the business operations, aside from accounting, marketing, etc. That is why there are actually certain factors that an entrepreneur will have to look in to first, before getting the spot for their business. You might think this is just a simple task — but it’s definitely not.
Here is a checklist when finding the perfect location for your business:
When looking for a location, you must consider your target market. Who are they? What do they like? And most importantly, are they in the area where you want to establish your business?
This can be critical especially for businesses like restaurants or retail stores. Take for example a coffee shop. You often see them near schools or offices, because they target students (who goes to coffee shops to study) or employees (who goes to coffee shops to take a break). You barely see a coffee shop by the sea, because that’s not where their target consumers stay.
The point of considering demographics when finding a location is to be able to reach out to your customers. It makes marketing easier since the people you want to capture are just right there, on the same area where you established your business. Thus, you are assured that you will have regular customers who will be coming over and over again to your store, without you having to put too much effort doing the marketing.
2. Foot Traffic & Visibility
Aside from demographics, you need to also include foot traffic and visibility in your checklist when finding a perfect spot for your business.
Foot traffic and visibility can both be a critical aspect for your business, because these will give you an overview of the turnout of the operation – whether it will become a hit or not. Think of the passersby who can be your potential customers. You can attract them without having to exert too much in marketing (just like mentioned above). All you need to do is establish your store in a location near your target market – a spot visible to everyone. Remember, the more accessible and visible your location is, the more you get to attract people.
3. Rental Fee
Starting a business is costly. And it is your goal as an entrepreneur to at least lessen your expenses as much as possible.
A big portion of your budget can go rental cost alone. That is why it is better if you have considered factors 1-4 before making necessary decisions. You also have to consider your “potential revenue” once you take that location. And also, consider your funding (do you have extra funds to support your leasing fee?).
One way to check out a good spot for your business is your competitors. Are they on the same area you want to establish your business? Are their businesses doing good? The logic about having your competitor as your basis for finding a good location for your business is simple — you can use them as a reference whether to establish on the same area or not.
Often times, businesses that don’t have competitors around the area gets all the customers. There are two possible scenarios that could happen: either the people in that area would want to try something else (ex. another cafe) or the existing business can no longer support the continuous demand from their customers. Now this is where you can enter — either to be an upfront competitor of the existing business (or an option for the consumers), or just a business that wants to cater to the needs of customers.
5. Park Space
When finding a location, you will have to consider those customers who come by with cars. You may think an empty lot will just be another expense on your end, but it can actually be an asset.
Think of this; you have a perfect spot for a restaurant, delectable dishes, fancy interior and excellent service crew — but you don’t have a parking space for your customers’ vehicles. Don’t you think it’s a turn off? Instead of attracting them with the service you can offer, you are driving them away, by not having a space for their cars. Imagine how many customers you could have had if they just had a place where they could leave their rides (unless if they took a cab or walked). There could be a lot.
Now, get your check list ready, and find that perfect spot for your business.