- This article gives four of the considerations you have to factor in when choosing a business location. Read on below..
Even if many businesses now are sprouting up online, this doesn’t mean that there isn’t any room at all for having a physical location. There are still many businesses that work well with having a physical shop. Whatever it is that you’re selling, there’s nothing that beats the feeling of buyers going through physical merchandise when they make a purchase. A majority of businesses still take the brick-and-mortar route, and they’ve found success in their operations.
But, this doesn’t mean that you can just choose any location at random. It’s important to give it much thought. Otherwise, the wrong business location can affect the success of your operations.
To help ensure that you don’t make the mistake of choosing one that won’t end up well for your business, this article gives four of the considerations you have to factor in when choosing a business location. Read on below:
The first consideration is accessibility. Remember that no matter how physically attractive your store may be, if it’s not accessible to your target market, then you’re only wasting your time. Your store traffic is still going to be very sparse.
How can you determine accessibility? Here’s a quick guideline that you can follow:
- Start by looking for places that are near one or more major roads that are also in good condition. The nearer your location to the roads, the more that people will get to know about your existence. Whether the people are traveling by car or passing by, your store location is an advertisement in itself.
- Choose locations that are also easily serviceable by public transportation. You know that you’re serving the greater market when you aren’t just accessible by those who have private vehicles. Remember that not everyone has a car. You’re limiting yourself only to a small market group if you’re not accessible by public transportation.
- Look for a location that has high pedestrian traffic. Generally, this is close to the city center, schools, hospitals, or offices. While the rent may be higher, it’s going to be worth it if your foot traffic every single day is also high, with a higher propensity for sales.
If you’re having a hard time weighing the options on accessibility, visit website of a reputable broker that can help you make a sound decision on your location.
Next on the list is security. This is understandably so as, surely, you wouldn’t want your store to fall victim to regular robberies. Make sure that the locations you’re looking at don’t have a high crime rate. Otherwise, you should move along and look for other options instead.
Security is very important, given that this is also one factor that can increase your insurance premiums. When your location is high risk for crimes, your insurance premium increases, adding a fixed expense at a higher rate. Why pay for a higher premium because of an unsafe location when surely there are many other options?
In running a business, you’ll always want to protect your assets and, most importantly, take advantage of ways that you can legally and appropriately reduce expenses.
3. Compatibility with Neighboring Stores
Another way to narrow down your options for your location is to check the compatibility with neighboring stores. Take the time to go through each of the blocks of the locations you’re choosing from. The neighboring stores should, at least, be compatible with your business. That way, it’s like you’re seamlessly driving more foot traffic into your store. For example, you’re a business selling beauty products. You can fair well if you’re in close proximity to nail salons or clothing boutiques. If you’re a business selling toys and baby products, then you’ll want to be closer to schools and supermarkets where parents always go to.
4. Mind Competition
There are instances when being nearby competing businesses is good for you. For example, if you’re in the car dealership business, then it’s best to set up shop in the place where there are many other car dealers. This is because customers looking to buy cars typically take the time to window shop. So, you’ll want to be one of their options, rather than not have anyone walk into your shop at all.
But, generally, it’s still best to stay away from direct competition, particularly brands that are more established. If you’re setting shop beside a brand that’s known nationwide or has become a household name, then you could lose sales. You’ll want to set your location at a place with no competition so that your market will give your brand a try.
As you can see, choosing the right location for your business requires putting much thought into the process. It’s not just enough to immediately go for the very first option you come across, without evaluating whether or not it’s going to turn out right for your business. When there’s so much at stake, surely you can’t afford to make any mistake with the location. Remember that once you’ve erected your business, you can’t just destroy it right away just in case you change your mind. Location is everything, and you can start by going through the list of considerations above.