Putting up your own business could evoke a roller coaster of emotions from excitement to anxiety, from anticipation to feeling overwhelmed. Opening a retail store, in particular, means you’ll have to tackle several variables for business operations, with location as one of the most crucial.
Finding the perfect place for your store can’t be overstated. This could make or break your business venture. But before you sign the contract of lease for office space in Uxbridge, for instance, you need to consider a few things first.
Ensure that your retail store stands a good chance of succeeding with these pointers on how to choose the ideal location.
Table of Contents
1. Understand Your Business Needs First
Before you start inquiring about commercial spaces for rent, it’s best to understand your business needs first. Take an in-depth dive into how your business will operate and satisfy the needs of your customers. Do you intend for customers to come over to your store anytime, or do you plan to book appointments for customer visits? Check the specifications of your business and match them with the right location.
2. Check Foot Traffic And Accessibility
In the retail business, foot traffic or customer traffic is immensely important. Higher foot traffic may significantly improve sales and your profit margin. Conversely, if your store is located in a remote corner where nobody ever passes by, ringing up sales would be quite unlikely. So, setting up shop in a high-traffic zone would definitely be to your advantage.
Aside from foot traffic, an accessible location is also essential. You’d want your customers to be able to drive, walk, or use public transportation to get to your store location easily, preferably on the way to their usual destinations. Furthermore, you should also consider the availability of parking space, especially when your target audience includes young adults, professionals, and families.
Another critical detail is to consider your store’s visibility from the customer’s perspective. It’s often the case that with better visibility, the less advertising you’ll need. You may reduce your marketing expenses considerably if your store is situated in a strategic spot. Consider a checklist when opening a retail store, but make sure that you’ve got the location spot-on.
3. Consider Demographics
Demographics play an important role in determining your store’s location. You’d like your customers to live or work nearby. It’s quite common for retailers and service providers to choose a location that’s close to their target market.
Another factor to consider is the community where your store is located. You need to check if the local community has a sizable percentage of your target customers. You can also look at how the community supports the businesses in the vicinity. Some communities may not be that welcoming to new businesses, as they tend to patronize existing stores. Hence, you must observe the neighborhood and see how it goes in terms of business activities. You can even try communicating with residents to help you decide if the area is a suitable location for your store.
Since your workforce, for the most part, will be coming from the local community, you also need to consider if there are available people who have the skills and talents that you need. However, if your potential employees are willing to relocate, it would be wise to check if the community has the necessary resources such as affordable housing, schools, and healthcare facilities, among others.
4. Study Your Competition
It’s also imperative to study your competitors in the area. Look at them closely. Do they sell products similar to yours? Do they add value to their products, thereby attracting more customers? Do they offer promotions? How many competitors are nearby?
Some types of businesses may not have to worry about nearby competitors when choosing the best location. But this is a bit tricky when it comes to retail stores. As you may have observed, there are business centers that can accommodate more than one store carrying the same line of products. However, there is a chance of market saturation that might give you a hard time competing for customers. But there is also a possibility that you could benefit from overflow from existing stores.
Despite having one or two competitors, you may still decide to open your store in that location. But you should come up with solid strategies to make your business stand out from your rivals.
Conclusion
You know what they say—it’s all about location, location, location! If you want to take a lot of the tedium out of identifying the best site for your retail store, carefully consider these pointers and you’re on your way to a good start.
