Prior to looking for a place to set up your shop, you need to have clear goals in your mind – what would you like to have in the building/space, what you would need to have and what you will not tolerate. Painting that picture in your mind is an exciting and tedious step in the development of your business structure – yet it is absolutely essential. Many of the decisions you make at the beginning of your company can be forgiven or corrected, however, a poor choice of location can clip the wings of your fledgling company before you can ever get off the ground.
Before you get excited and jump at the first property that you can afford, you should consider the following factors:
Operation Style
What kind of service are you going to be providing – is it a more formal service, or something more laid back and casual? The place you pick to set up shop should reflect that type of business you are going to be. A higher-end retail store may not do as well in a low-traffic strip mall as it would inside of a mall boutique.
Demographics
When considering demographics, it is urgent that you think about who your customers are and how important their proximity to your location will be. For traditional retailers, this is intensely important – for others, it may not be so pivotal to your success. Understanding your target demographic is a critical variable in this segment of the search for the right location.
Look at the community you are planning to enter. If your customer base is mostly local, is there an adequate amount of the population that lines up with your demographic profile? For example, if you decide to set up your high-end perfume shop in a rural town, will the average person feel the need to enter it? Or have the expendable money required to keep your business afloat? This is arguably the most decisive factor in the entire process of finding where to set up shop.
Foot Traffic
Being in an area with a maximum amount of foot traffic is important to the success of your business. If you are hidden in an area of town where no one goes, you are going to go unnoticed or skipped. However, if your business requires confidentiality, you may not want to be in a high foot traffic area. Once again, understanding your target market audience is a necessity to understanding where you should place your business.
Watch the area around your desired location at different points of the day, and on different days, in order to best monitor the total volume of pedestrian traffic – and that it fits your business needs.
Accessibility
Sure, you may have a great location with a high volume of foot traffic, in the part of town you like, in an area that is filled with your target audience – but, if your store is inaccessible, how will they get to you? You need to consider customers, employees and suppliers. How many parking spaces do you have allotted to your shop? Is there entry in the back for your suppliers to easily and efficiently get your materials to you?
Be sure there is ample and convenient parking for your customers and your staff with enough room for your suppliers to comfortably reach your business.
Infrastructure
If you have a contemporary operation that requires a more high-tech infrastructure, you might find that an older building isn’t suited for you. You need to make sure that the building you want to enter has the proper air conditioning, electrical and telecommunications services to meet your business objectives. If you are in an area that has frequent inclement weather, it might be in your best interest to find a building that has employs the use of commercial generators to ensure that your business stays running even during harsh storms.
It’s important to consider all of these elements when deciding on the right place to set up shop. Remember, this is a huge undertaking and you should not simply jump into anything that you don’t have 110 percent confidence in!
