Are you searching for your business space? While thinking about an excellent business idea, you must have heard the term, ”location, location, location” more than a few times. Because without a good location, it would be quite a cumbersome task for all the newly-made entrepreneurs to embark into the competitive business world. So, it is always advisable to look for the best location before making any decision regarding launching the company.
Why is location important when starting a business?
Selecting a location for your business is just like setting up a bridge for success. You should have a clear picture of your needs. Even though developing that picture can be a time-consuming task, you need to give it that much attention it deserves. Believe it, almost every startup mistake can be corrected later on, but a poor choice of location is sometimes impossible to repair.
Whether you are setting up the business for the very first time or opening the second brand of your existing business, choosing a business location is not a decision you should make on a whim.
One single mistake can impact the survival rate of your business. Some people think that they should choose the trendiest building or the cheapest listing. But this is not a good idea.
You need to take care of everything before establishing your business. As a matter of fact, the location of your business isn’t something that you can change it easily without any proper research. The business location determines how well you will do. Therefore think about in this sector, before coming up with a good decision.
Factors to Consider in the Analysis of your Business Location
Well, there are plenty of factors that you need to consider before choosing the location of your business. Ask yourself about your business needs and requirements before buying any decision, especially about the location of your company. Here are some business location factors, then you need to keep in mind while choosing a location for your business.
Tip 1 – Check Demographics of the Place
The first and foremost tip for selecting the right location of your business is to take a look at the demographics carefully. Basically, there are two pertinent angles to solve the issues regarding the demographics of the place. Firstly, you will have to consider your customers. And their proximity to your business location.
If you are thinking of setting up a business as a retailer or some service provider, then you need to take care of these factors. However, if you are establishing your business for some other purpose, then it might not be as important. The more you search about the demographics of your selected places, the more precise the idea you will have about your targeted market.
The second thing that you need to scan is the community of the place. If you are thinking about setting up the local citizens of that place as your customer base. Then you really need to ask yourself these questions:
- Does the community have a stable economic base?
- Will the community be able to provide a healthy environment for your business?
- Does a sufficient percentage of that population match your customer profile to support your business?
- Does the community largely dependent on a particular industry for its economy?
Therefore, you have to be very cautious while considering the community of that place. If the answer to the above-mentioned questions is yes, then you really need to find good ideas.
And last but not least is to think about the workforce of that place.
- What skills do they have?
- How talented are they?
- How is their grasping power?
- Will your employees find the schools, recreational opportunities, culture, and other aspects of the community satisfactory?
- Are they willing to take risks?
- Do the locals have the resources to serve their needs?
- Is there sufficient housing in the appropriate price range?
Tip 2 – Foot Traffic
In this competitive world, approximately half of the retail businesses pay attention to the foot traffic of the community. If your business shop is too far away from the town, then do you think that local citizens will come to your shop. Obviously, not! So, you have to look for that place where shoppers are likely to come to your location.
On the other hand, if your business requires confidentiality, it will be advisable for you to locate in a high-traffic area. Therefore, keep a track record of traffic outside your potential location at different times of the day. Also, on the different days of the week to make sure that the volume of pedestrian traffic meets your needs.
Tip 3 – Keep an Eye on Competition
The next factor that you need to concentrate on before choosing the best location for the business is your business rivals. The proximity of your business to other competing businessmen could be crucial for the success of your business.
Either they can provide benefits to your business or cause a hindrance to your business success. Having proper research work about your competitors in your selected area, and also about their offerings could help guarantee you choose the right location for your business.
And if you are not finding enough competitors at that place, then it might be a warning sign to expand your horizons to a new location. But all these situations differ according to your business plan and services. For instance- If you are thinking of opening a car dealership store, then you need to select that place which is quite near to the customers.
On the contrary, if you have unique services or products which you are going to offer with good innovative ideas, then you should choose a ripe market. In this way, you can easily convince your customers quickly with your new ideas and establish a presence in a new area in a relatively short time frame.
Tip 4 – Potential for Growth
What is the potential growth of that place? Will the premises be able to increase the revenue of your business? Shifting from one place to another place is a big upheaval decision. Sometimes it can prove to be time-consuming and expensive too. Whether you want to choose the location for a short-term project, or would like to stay there for the long haul, you have to make your decision.
The more precise your idea will be for the potential growth of your business, the more revenue or profits you can gain out of your sales. More importantly, also look for the flexibility of the location regarding the premises’ suitability for your business needs.
There is no denying the fact that seeking a business location is quite tricky and time-consuming, especially when you have no idea where to start looking for. If you are facing this problem, then this guide can help you to solve many issues, especially while hunting for the premises of your business. Always remember to consider the previous business location factors to narrow down your search and then ask yourself these questions before coming to any conclusion-
- What you must-have?
- What would you like to add to your business plan?
- What couldn’t you face or tolerate?
- How much are you going to spend?
- How about your competitors?
- What about the demographics of the place?
Article contributed by https://startupr.hk/