Location is one of the first things you want to pin down when thinking of launching any business. That has many factors that go beyond the price of the lot, and it can help you determine what kind of establishment would be the best bet for you to start up. Here are some considerations you’ll want to make when scouting a location before starting your business:
Check the community demographic.
It’s essential to see the kind of people that frequent and populate the area where you’re planning to open your doors. Whether you will be in a bustling cityscape or a neighborhood that’s mostly consisting of residential spots, this can help you center on what the most relevant types of businesses can cater to the market. For instance, a laser tag space may not be very wise in a community made mainly of seniors.
You can also think about what general services you can offer that aren’t limited to any age group or gender but haven’t been oversaturated. For example, you can launch an urgent care business through a franchise since this is a necessary resource that can be useful to anyone in the neighborhood. From there, it would just be figuring out if there are any similar spaces nearby and if it’s in the right spot.
Monitor foot traffic.
It is a practical step because you could have a large space for a good deal, but it won’t provide you any return of investment if it’s in the middle of nowhere and only sees a few stragglers here and there coming in. This research usually takes some time, so if you’re trying to pin down a specific location you want to bid on already, ask the seller if they have any information and try to do a short-term check yourself for good measure.
If you’ve already set up your establishment, what you can do is to start analyzing the data right away so you can make any necessary adjustments and create a strategy for funneling more people toward your location.
First, figure out how far you are from any other spot and any relevant zones like residential areas and commercial districts. Are you easy to find? Can anyone drive up to your space within a few minutes?
From there, you’ll also want to scope how easy it is to get around in your area. Are there any particular obstacles that would make it hard for people to enter if they’re in a car? Is the area walkable? You’ll also want to consider the level of accessibility you create for disabled individuals. If you don’t have ample space and ramps for wheelchairs, this can spell a lot of problems. Even other factors like the road itself mark just how accessible your spot is.
You can get an audit now and then to make sure your establishment can maintain its accessibility every few years.
Scout the competition.
One of the last things you want is to open up an establishment that feels redundant. That will only set you up for a disadvantage, especially if the existent competition has already established itself well within the community as a reliable resource. You’ll also want to look at other spaces nearby that, despite offering different products or services than you, may also be competing in the sense of how they take up foot traffic and consumer attention.
Competitive intelligence is one of the most important pillars when determining how your location can affect your business. It also informs you about the general costs of operation in the area. Do your networking, ask around, and even visit the space yourself to get a first-hand look at how they operate and provide quality that proves competitive.
Think of recruitment
Another factor you want to think about when scouring your location is how much hireable people are there. The hiring process can be challenging, and it can be a sudden hindrance if you don’t anticipate it. Make sure that there are qualified individuals who are open for hiring wherever you decide to open up; otherwise, you may suddenly find yourself in a rut of not having enough employees or dealing with a staff that is not the best fit.
Aside from having a limited pool of hopefuls to choose from, keep in mind that there may also be other establishments recruiting at the same time for the same roles you need.
80% of businesses survive their first year. While this is a pretty manageable statistic, you want to maximize your operations and make sure you don’t have a rocky road by hunkering down on the above factors. With those in mind, location can be the difference that keeps your business up and running.