No doubt you’ve heard the refrain, “location, location, location” used by realtors in the housing market. But the mantra should equally apply to the business setting too. Where a company ultimately decides to locate is crucial for its business.
Unfortunately, knowing exactly where to set up isn’t an exact science. As always there are significant costs and benefits involved and finding the optimal solution isn’t always possible. The good news is that there’s a lot that you can do make an educated guess at the best location. Here’s how.
Look At Where Your Competitors Are Locating
Have you ever wondered why phone shops, restaurants and clothes shops all seem to set up together? At first blush, it seems kind of weird. Why would businesses that are competing against each other all set up in the same place? Do they really want their customers to be hopping in and out of each other’s shops?
But when you spend a little time thinking about it, it kind of makes sense. Retailers know that customers won’t want to travel separately to visit their shop. Instead, they’ll just want to take a trip to a single, central location. Although they’re next to their competitors, being in amongst all the action is beneficial because of all the shared footfall. Your rival might be just next door, but customers could see your business and be tempted to make the switch and perhaps try out your product.
Be Aware Of Location Costs
Different locations come with different price tags. Locations that are central are often a lot more expensive than locations that are rural. But the type of location you choose depends almost entirely on the nature of your business. If you’re in the logistics industry, then you might want to locate out of town next to a major trunk road. You could use a firm like Armstrong Denver Co to construct warehouses which you could then use to distribute products all over the country. If you’re a restaurant, on the other hand, then locating out of the way might not be a good idea, unless you’re trying to break into the intercity market.
Check Out The Local Demographics
Perhaps the most difficult part of finding a great location is choosing an area with the right demographics and traffic patterns. Retailers will often ask themselves what the optimal level of traffic is at a particular location and what type of traffic is it? Although footfall might be high, it’s worth practicing due diligence, according to Michael Rodelle, a realtor executive. He says that the type of business you set up needs to reflect the local demographics. There’s no point setting up a dollar store in a district full of millionaires. It’s simply not going to see any business. The size of households, average income, and median age are all important factors that determine who’s going to visit your business.
Traffic congestion could also be an issue, especially if you’re planning on opening an office-based firm. Long commutes can cause high staff turnover.