By choosing a good location for a business, the owner can increase his or her chances of success. Choosing the right site requires extensive research and careful thought to make an informed decision. While an office location may not be a crucial factor in all sectors, for restaurants, retailers, and other companies, location choice is important. Here, business owners can get a few great tips on what to look for and ask about when searching for a new location.
Consider Area and Customer Demographics
Getting good demographic info is one of the most vital steps in selecting a business location. It takes some research, but there are numerous ways to find the right info. Beyond reading a city’s census data, business owners should look for detailed demographics on the area’s people. With location analysis, owners can get information on potential customers’ lifestyles and the area’s traffic patterns. Additionally, owners should consider events, shopping centers, schools, and other traffic generators that may draw people to the area.
Check the Location’s Accessibility
When business owners are considering locating to a busy area, it’s important to ensure that the chosen location has enough parking for employees and customers. Consider the number and size of deliveries the company may receive. This alongside the ease with which delivery trucks can get to and from the location. After all, even the best location is useless if there’s no place to park!
Assess Proximity to Competitors
Many of today’s business owners choose to open locations near their biggest competitors. Here, the company may benefit from comparison shoppers, overflow traffic, the competitor’s marketing efforts, and the fact that the competitor is an established business where people are accustomed to shopping for certain products.
Being near a competitor only works if the new company has a great business model, such as higher-quality services or lower prices. This helps ensure that the company can draw customers away from its competitor. If the company lacks a definitive edge, it may be advisable to look for a location in another area.
Consider Traffic Generation Factors
There are numerous factors to consider regarding the level of foot traffic a business may generate. If a retailer is considering a location in a mall, the owner should think about whether they can get a space near the food court, a major entry point, or a central area. Owners should also consider the surrounding businesses for employees’ sake, thinking about nearby shops, daycare centers, schools, fitness centers, and more. Finally, look for complementary companies. For instance, locating a home goods store next to a furniture seller may be a great idea.
Evaluate Operational Costs
Consider the cost of renting space, as well as operating expenses like insurance, custodial services, parking, and utilities. Retail and office spaces that include utilities in the monthly rent amount may offer substantial savings over lower-priced sites that don’t include utilities. It’s a good idea to think about whether renovations are a requirement to get the space ready for the business.
Opening a new location is an exciting prospect for many business owners. It is a decision that should not be made lightly. By making the above considerations, company owners can find locations that suit their business type, needs, and budget.
Slaby & Associates is built on over 20 years of commercial construction experience. Seeing problems with other firms, Dean Slaby took his construction knowledge and built a brokerage firm to facilitate clients from beginning to end. From finding the perfect property to lease or construct on, Slaby & Associates is able to help. Contact them today.