One of the first steps when opening a brick-and- mortar business is choosing the location. You want an area that would contribute to the success of your business — such as providing high foot traffic or a safe neighbourhood. In addition, you want to understand what you can afford.
Not to mention, the location should align with the purpose of your business. To illustrate: if you own a skydiving center, it might not fit well within a strip mall dotted with doctor’s and chiropractor’s offices.
You also want to advertise your location accordingly. Read on to learn more.
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Location, Location, Location
Some say that location is all that matters. Well, how important is it to you? When displaying your address, will it be an area that makes you proud?
Location can mean the difference between massive sales or business starvation. You also want to feel proud of your location. So much so that you would use an address stamp to mark all your packaging and business materials.
The location only works if it’s accessible and attractive enough to your target market.
Consider the Proximity of Your Customer Base
Depending on your type of business, it would be important to look at the community. If you rely on a local customer base, can you attract enough of the population suffice to support your business?
Yet, there is more to a location than just your customer base. You also want to think about access to local talent.
Does the community offer the type of talent pool your business needs? Will your employees like the surrounding schools, the cost of living and available housing prices?
What Can You Afford?
Most brick-and- mortar businesses rent rather than buy spaces. This makes it more affordable and flexible in the event you need to move. Many start-ups just don’t have the resources to purchase real estate.
It’s never a good idea to incur too much debt when you are first starting out. Moreover, you should only lease a space you can afford.
When looking at your business plan, you must determine how much you can pay each month — after projected expenses and revenues. Contact local brokers and agents to find out the average rent prices in your desired area.
This way, you can make sure your budgeted amount makes sense.
Does Foot Traffic Matter?
For many retail businesses, foot traffic is crucial. This is the reason for shopping malls — one store attracts customers who then browse and potentially shop at other nearby stores.
As a result, you want your location to be seen. The last thing you want is to be hidden in a corner where shoppers may pass you by.
So, figure out if the location has enough foot traffic to meet your revenue goals.
People hate having to fight over a parking spot. Think of how accessible your location will be and how easy it will be for cars to get in and out. Will you need to receive deliveries?
Can your suppliers efficiently deliver products to your business? Make sure your location offers ample parking and enough space for your deliveries and suppliers.
Your business location can ensure a continual feast or doom your company to famine. This is why it is important to consider the above factors when choosing your ideal space.