If you wish to open your own business but desperately need a location, you’re right where you need to be.
Choosing a site is more important than you’d think because if you are placed somewhere hard to reach or in an unwelcoming neighborhood, you may start on the wrong foot.
So, in the following paragraphs, you’ll learn what factors determine your success regarding your physical business location and how to make the right choice.
Be aware of your audience
When starting a business, you’re selling something to a certain type of customer that needs that product or service more than others. So, your targeted audience will revolve around factors like age, gender, income, location, etc.
But this time, you’ll consider your area based on the demographics, meaning that you’ll need to find out what places your customer audience is more likely to spend their time so that it will be easy for them to buy from you.
For example, if you want to open a coffee shop, it would be best to consider your placement around schools or offices where more people need coffee on the go.
Regarding this example, it’s also necessary to know if the community has a stable economic base so your business can be supported. Otherwise, you might find yourself fighting off the competition or closing your business within months.
Consider accessibility issues
If you want your location to be easy to find, you need a place beneficial for customers, employees and suppliers. So, if the street is pretty busy, couriers might face difficulties in delivering your packages, and people with disabilities might also find it challenging to get to your location.
This can usually happen around the city centre, so you may want to avoid that area since the prices are also pretty high, and for a small business, it may not be feasible to be in the city’s centre yet.
Monitoring the traffic in different zones can also help you figure out where you should place your business. For example, foot traffic is among the essential elements for retail businesses because you want to be accessible for customers to get there by foot, so you need to avoid dead spots and corners that are likely to get ignored.
Analyse the building’s infrastructure
When renting a place in a building, you’ll probably be surrounded by many other companies or apartments. So, you need to analyse its infrastructure to confirm that it’s safe for you and your customers to enter and ensure it provides the essential services to meet your business needs.
An engineer could help you check if the building has the proper electrical, air conditioning and telecommunication features so that you can conduct your tasks securely.
For businesses where you focus on using home appliances, you may want to check the power connectors to make sure they’re functional or to know if they need to be replaced with new ones. Depending on your digital systems, it may be necessary to have connectors with the proper voltage, so you’re not risking a short circuit.
Short circuits can quickly happen if you don’t notice:
- Burnt outlets
- Damaged cords around appliances
- Dirt stains or dust
These can contribute to a fire hazard if there’s a chance of overheating. Make sure you check the connectors but be aware of where the trash is placed, the condition of the storage place and the heating appliances.
Look at the competition
You may notice that the preferred space is next to a competitor. In that case, you need to think about this thoroughly because it’s like a double-edged sword. Sometimes, it may be beneficial for your business to be close to a competitor when they provide less qualitative products and services because customers will always turn to you.
On the other hand, if the other company is known as successful, it’s possible that your small business won’t make it, and you’ll lose important resources and time.
It’s best to look at your competitor’s past and see if you can offer what they lack. Look into their popularity online and see what customers are saying.
If there’s anything you can provide better than your “rivals”, you can try setting to that place, but always consider that new competition can always arrive in your area, so look for constant improvements in what you offer.
Evaluate the costs
We discussed the community’s economic base sustaining your business, but you also need to decide if you can face the costs of the place you want. If you target a high-living area, you should expect the utilities and other expenses to be pricey.
You need to estimate if the income can cover those without you making immense efforts to maintain the company.
Start by evaluating the supposed fixed costs. If you can make enough to cover that, but there wouldn’t be any more funds for unexpected situations, you’d better not take the risk. Or, even though you may find a way to get through the month, you still need to be prepared for the long run in terms of expenses, so ask yourself if this place is really worth your investment.
Examine the terms
Finally, if you have a few places in mind, compare the terms so you won’t get surprised by unexpected requirements.
Read through all the conditions of any leasing or purchasing agreements to see the consequences of not paying on time or damaging an appliance and if the building is insurance-covered.
Don’t rush into signing any documents before taking some time to consider the best opportunity for your business so that you won’t find yourself having any other choice but to close the business. Know that most companies are known to close their activities within the first year, so make sure you won’t be one of them.
What do you think about these tips? We believe they are crucial when having your own business because the location placement can draw in more customers or scare them away. Try to contemplate more on what you wish your business to become in the future.