Is Your Location Affecting Your Business?
According to Small Business Administration studies, poor location is one of the main reasons a business fails. In determining a site for a retail operation, you must be willing to pay for a good location, which often reflects the volume and quality of the customers you generate
The location of a business can affect many operating aspects, including total sales and operation costs. Even home-based and online businesses can be affected by location-dependent rules and regulations.
If you’re just starting your business, choosing your location could be one of your most important decisions. Instead of making a mistake you may never recover from, do your homework to find a location that appeals to you, your staff and your customers.
What type of location is best for your small business?
The first thing you should do is research the community you want to open your business in.
Some of the most important things you should consider are: resident age ranges, purchasing power, family status, local regulations and ordinances, site history and rent. These factors will fluctuate from community to community.
Assuming you find a community with the right balance for your business, you’ll next want to determine an exact location to open your doors.
Here are some questions to ask on your search:
4 Questions To Ask When Looking For A Business Location
- Is There Enough Foot Traffic? – Businesses in the retail and hospitality trades rely a great deal on visibility and exposure to their target markets. Study individual locations closely to ensure there’s plenty of foot traffic made up of your target market. Use unique signage and street displays to convert as much of that foot traffic as possible into new customers.
- Is There Enough Parking? – If customers come to your business, parking will undoubtedly be of major concern. Choose a location with enough parking in close proximity to accommodate a full store. Offer parking validation and online driving directions to capitalize on driver habits.
- Is It Advantageous To Be Near Competitors? – Many experts agree the best place to be for many small businesses is as close to their biggest competitor as they can be. Determine whether you can piggyback off competitor marketing or if you’ll just be overshadowed.
- Will The Neighborhood or Building Reputation Help? – The neighborhood and building you choose to do business in will obviously factor in to your rent. Find locations with a unique history or reputation and use that in your marketing to draw customers to your business.
Rent will always be a motivating factor in choosing a location for your business, but it shouldn’t be the only one. Ultimately, the best location for your business is an individual matter based on many things. Study the habits of the customers you want to attract and then choose a location that fits.
Once you have a location, play up its strengths in your marketing and make sure your target audience knows what makes your location different, better, easier, more exclusive or more memorable.