Location, location, location, they say. How do you make such an important decision? When picking a locale for your small business, here are some tips and things to consider.
Cost
Cost is always a big factor, especially for startups. The location you want might not be the location you can afford (yet). Whatever space you choose, consider “hidden” costs like renovations. What taxes will you need to pay? Retail spaces usually cost more than office spaces or warehouse spaces. A more pricey location might require you to raise your prices a bit. Could you do that? Be realistic about what you can spend on your location.
Demographics
You want to be as close to your target audience as possible. Who are your customers? Look at areas that have higher populations of your potential customers. You want to appeal to the people who live in your neighborhood, and you’ll want to adjust your marketing as needed to attract more nearby customers.
Safety
It’s always good to get a location is as safe a place as possible. In a neighborhood with a higher crime rate, many potential customers will avoid shopping at your store because they don’t want to go somewhere they feel less safe. It may also be difficult to hire or retain employees, and you want your employees to feel safe coming to your store, being in it at night after closing, etc.
Parking
When possible, get a location with easy and adequate parking. Your customers will not be happy about having to pay for parking, or having to park far away from your store. If you location has a parking lot, is it big enough for the traffic you expect? Also, parking lots should be well-lit.
Competition
Don’t try to distance yourself from your competition. In fact, the best location is often as close to them as possible. The location of the successful competition is obviously a good area for your target demographics. If the customers that are going to your competition can see you, they might decide to check you out instead, and you have a unique ability to attract them right when they’re interested in making a purchase.
Access
The best location for your business is going to be somewhere that’s easy to find and get to. If it’s on the outskirts of town, for example, people may not want to travel that far. If they get lost on the way, you’ll lose their business. You also need to consider your business contacts and partners who will need to find your store. If you need to receive regular shipments, for example, will it be easy for the shipment to arrive? If you have a choice, it’s always good to be close to suppliers.
Image
It’s very important that your location jive with the image your brand is supposed to represent. Does the location portray an image that’s consistent with your brand? You don’t want to be located somewhere that makes your business look bad or seem out of place.
The information within this article comes to us via Icon ID, the retail construction management experts.