Choosing the right location is a major factor in building your business.
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The location of your company can make or break your success, so it is important to find the right place to start.
It takes a significant amount of time, effort, and planning to transform a small-town business into a booming company, but a good location will give you a great head start.
These tips on finding a good business location will help determine the right place for you.
Recognize the Source of Demand for Your Business
It is essential to find out the audience your products appeal to when determining your business location.
In order to have a general idea of who your target consumers are, pay attention to the types of groups that are attracted to your business.
When running a fast-food business, for example, you may find that most of your consumers are families and college students. If this is the case, choose locations in areas where these consumers are highly populated, such as suburbs (for the families) and campuses (for the college students.)
Steer Clear of the Competition
Avoid locations where you may be caught in competition (if you own an ice cream shop, don't set up your business right next to Friendly's.) Your business is not large enough to compete yet – you need to work on growing it before thinking about being competitive.
Instead, set up your ice cream shop in a highly populated place where it could be useful to consumers. For example, you might set up your ice cream next to a steak house. After a good meal at the restaurant, people will want to come to your business for dessert!
Talk to Your Neighbors
Think about all of the factors that drive your business before you choose the location. Talk to local grocery stores and retailers near your potential location, and figure out what areas their consumers come from.
If the number of consumers at these local stores is not as many as you hope to receive for your business, you may want to consider moving to another location.
Stay Close to Big Brands
Choose a location where you can have big brands as your neighbors. These brands are successful because they made a wise choice in choosing their location, so you can learn a lot from them.
They may have paid expensive location selection consultants to find a business location, but you'll get the benefits of that effort for free.