, Saturday, May 10, 2014
Type of location
Ideally, you want to attract as many customers as possible. So when deciding where to locate your business, think about how your customers can reach you; are they likely to be walking past or driving? Would you attract more customers if your business was surrounded by other similar businesses or complementary businesses? Would your target market fit the demographics of the area?
Finding a location that suits your business is very important. This may sound obvious, but it is something that can be easily overlooked.
Consider your present and future business needs carefully; will you need generous storage space, perhaps not immediately, but in the near future? Will you need Internet connection and is that available in the area? Will local zoning laws allow you to operate your type of business?
Consider the cost
When working out your budget, seek advice from agents and brokers about the cost of leasing or renting premises or property. Then determine how much you can reasonably afford.
It is often a case of the better the location, the higher the premium. However, if you can afford to, it may be in your best interest to sacrifice a portion of your budget originally intended for a non-essential item in order to secure a prime location and ultimately attract more customers.
Here’s an example...
Susan and Jane want to open a shop which sells clothing and accessories for children and babies. When considering location, they research the demographics of their own neighbourhood and realise that the majority of residents are professional couples and university students. They reason that even if they secured a shop with excellent frontage on a busy street, they’d be unlikely to generate much interest.
Extending their search, they discover an area where younger families are living. Lease premiums are more reasonable too. They imagine most parents will bring their children shopping with them, so they look for a location with a car park.
Finally, they strike gold and find an available shop located in a precinct near a child care centre, with plenty of parking. Among the stores in the precinct is a florist and gift shop, a clothing boutique and a popular cafe. The rental on the premises is slightly higher than what they were looking for, but they reason that the location will attract their ideal customers.
YOUR ACTION PLAN
£ Know the principle needs of your business.
£ Thoroughly research the demographics of your preferred locations.
Contact Wood Accounting team today on
1300 098 852
for assistance with this Action Plan!