How to Find a Good Location for a Business
When planning a retail business, and especially for a franchise opportunity, you must consider many factors, on how to find a good location for a business. There’s a reason the proverbial three most important things in real estate are “location, location, location.” Finding the ideal location for a retail store can be intimidating, particularly in a slow economy. With a little common sense, you can plant your business in a location that will help it to bloom and grow into a profitable venture.
Know your customers. To truly understand your demographics, you need to have an accurate idea of where people will want to shop. Once you have identified your target market, use U.S. Census Bureau information to identify the highest concentration of your most profitable customers. Then make your location convenient to them.- Consider convenience. Many businesses die because they are difficult to reach. If your parking lot has a confusing entrance, or customers must turn around to get to you, they will be less likely to pop in and get to know you. Also, think about your neighbors. For example, don’t place a high-end boutique next a thrift store. But the same boutique may prove profitable next to a salon.
- Choose visibility. A corner location can attract people coming from all directions. But areas with heavy traffic may deter potential customers. People want to drive to your store, not be stuck next to it.
- Scope out the competition. For some businesses, it is a bad idea to be too near the competition, but many small business owners have found that a shared location can be beneficial. Think of this: Your biggest competitors spend a great deal of time, energy and money choosing a location and driving traffic to it. Why not piggyback on their hard work, and share the customer base? The more mainstream your product’s appeal, the better it is to co-locate. Specialty stores will be a destination all on their own, so proximity to competitors is not as important.
- Mind your budget. Most experts recommend planning to spend 10% of sales to cover both rent and advertising. Keep that in mind to make good decisions about how much you can reasonably afford.
- Think on your feet. Give serious consideration to foot traffic. This may mean choosing a location on a street with high pedestrian traffic, or it may mean a shopping center with a strong anchor tenant. An eye-catching sign and plentiful parking will help your business thrive.
Talk to owners of surrounding businesses before making a final decision on your location, such as local commercial real estate experts, as they know upcoming road construction issues or any new real estate developments coming in the near future. Knowing how other companies have fared will give you valuable insight into your own chances for success. Franchisees have an advantage, because a good franchisor will provide solid information and support to help choose the perfect spot. Interstate Batteries provides franchisees with plenty of training and the expertise they need to run a successful retail business. For more information on how to be a part of the estimated $86.2 billion battery industry, fill out a request for more information form, or join our online community on Facebook or Twitter.
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