The location of a business is a make-or-break component. The location might seem like a small aspect of your operations, but it really takes up a large part of it and matters more than you think. Your location is where your target clients are, so you have to pay close attention to this detail. Of course, you want the most buyer turn-out when choosing where you will conduct your business.
To make sure you get the location right, you must consider what kind of business you are operating. Business parks, malls, and retail centers require heavy foot traffic to thrive. Notice that most of these businesses are located near professional offices, hospitals, and even schools, as this is the demographic that seeks convenience to make up for hectic schedules. Why would a student want to drive around town for a meal when they can walk across to the nearest hub?
Now, the aforementioned example might water down the process and make it seem as if choosing the perfect spot is as easy as rolling a die. It is not. Choosing a good location that will make your business more accessible and appealing requires effort, careful research, and intense planning. It may be difficult, but it is nowhere near impossible. Here is how you can decide on a good location and all the things you need to consider.
Assess your business industry or niche.
The first step to choosing a good location is determining your business industry or niche as this affects the location. Select the best place that suits your business. To illustrate, if you are a retail business, You can open up stores and stalls in malls and hubs, but you can also open up shop in places where you think your products will sell just as well, like airports, event kiosks, etc. Similarly, if you can also try online selling and capture a unique market who prefers to have their goods delivered right into the their doorsteps.
Are you running a mobile business? For example, if you operate a food truck, you can always expand by purchasing more trucks and by hopping from one place to the next. As the name implies, this flexible store will only work only for business concepts that are designed to be moveable.
Do you run an industrial business? These businesses require special needs when it comes to choosing location sites, as warehouse space and transportation route access is needed. You may also need permission for the local government unit, along with other regulatory licenses to operate a large factory.
Note: Only you can truly determine the type of location needed for your business. Refer to your business plan if needed. You may also consult with analysts for additional assistance.
Make sure the location is within your budget and is safe.
The next thing to do is to ensure that your desired location will fit the budget you have set. Budgets are set in place to maximize the use of resources. Review the location, prices, and terms and conditions thoroughly. You don’t want to rent something that’s way beyond your budget as this can eat into your profits.
You must also consider the safety of the location. The last thing you need is to be in an unsafe place where your business and staff are vulnerable and prone to robberies and the like. Clients will also feel uncomfortable going to your place if safety is a primary concern.
Go where there is demand for your business.
When opening a business, especially if you are starting, it is best to go to an unsaturated location that’s just starting out. This makes it easier for you to draw in potential clients. Go where there is a high demand for your goods or services but a low number of competitors. This will help you set a good price for the products or services you offer.
Know your branding details and demographics you cater to.
Who do you cater to? Identify the target audience for your startup project and work from there. Are you running an upscale high-end brand? If so, consider putting up shop in a high-end commercial district. If you are running a warehouse, you’d probably opt out of opening a storefront. Do you sell affordable but high-quality goods? Consider opening up in a retail center or an independent store online.
Needless to say, who you cater to, your brand identity and the price of your goods and services will largely influence the location needed for your company to thrive. You cannot be flippant about your business address as it can have a tremendous impact on your bottom line. Sometimes, even a tiny difference of being in the ground floor versus the second floor can affect your sales.
If you need help setting up your business, give our team a call. We can help you with business registration with the BIR, accounting, bookkeeping, and other business-related concerns. We offer free 30-minute consultations.
