Location, Location, Location
If your aim is to deal face to face with your customers, then you should carefully decide on the location of your business. A bad choice of location can cause you to suffer problems which can be difficult or even impossible to solve, and may even hinder your business’s success.
Preferably, you’re going to would want many customers coming in your store. That means when choosing your business location, it’s critically important to consider how customers can reach you. Are they likely to walk pass or drive? Is it better to be near a competitor or complementary businesses to draw more customers? Will people in your target market be available based on the area’s demographics?
It may be a given consideration in business, but choosing a location that best fits your business is sometimes taken for granted. It should have been an important decision but most of the time, simply neglected.
Take careful consideration in the present and future needs of your business. Will you require a large storage space may be not now, but in the near future? Is internet connection necessary and easily available? Will local zoning laws consent on your operation in that area?
Examine the cost
Ask advice from brokers and representatives about leasing or property rent cost when preparing your budget. After that, identify how much you can practically afford.
Most of the time, you would need to pay more for a better location. However, if you have the money, you may forgo part of your unimportant item to add to your budget for a good location. By this, you may be able to attract more customers.
Sarah and Amy were planning to put up a business which sells children and babies’ clothing and accessories. During their research on choosing a location for their business, they figured out that most of the people living near their area were university students and professional couples. They concluded then that even if they would have a great facade, it would not matter much as it would not attract lots of customers.
After searching for better options, they discovered a location where younger families reside. Lease costs were also reasonable. They thought to look for an area with a car park as most parents may be bringing their children with them when shopping.
At last, they struck gold when they found an available shop with plenty of parking, located in a precinct near a child care centre. There were a florist and a gift shop, a clothing boutique and a popular café in the precinct. The rental cost was higher than they had expected, but they realised that it would be a good investment to attract the right customers.
- Understand your principle business needs.
- Research carefully on the demographics of your desired business location.
NOTE: This month we’re holding a limited number of Free Business Strategy Sessions designed to show business owners how they can manage and grow their enterprises with the least amount of cost and disruption possible.
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If you’d like to schedule one of these Free and obligation free sessions, let us know by email by using this contact form or call 07 3668 0646 and we’ll set things up for you.
James Huy Vuong is a CPA and the owner of Your Accounting Partners. Partnering with businesses from start to scale thru to sale.