Location is considered key for a reason, no matter if you’re looking for a regional hub or a simple mom-and-pop sort of operation. Having an understanding of your location and the way it affects your business can be critical for understanding your clients and your sales numbers.
Here are a few tips to help you choose the right location for your retail business.
Consider the Demographics Of Your Consumers
Knowing who your customers are is the first key to success as a business. How does your audience fit into the demographic of their town or city? How would they feel about your choice of location? Would they be comfortable in the area you’re considering, and would it be convenient for them to get to? It’s also a good idea to make sure the location would be consistent with the image your brand wants to project.
Who Is Your Competition?
When you hear the word competition these days, your mind might go directly to cyberattacks and the like. You wouldn’t be alone. In fact, cyberattacks have seen an 800% surge during the COVID-19 pandemic. That sort of underhanded competition is one competition issue to be aware of as you build your business.
However, it’s also a good idea to consider competition when it comes to choosing a location for your business. Are the other businesses around your potential location directly competing with yours? Do they work well together? For example, if you’re looking to open a bakery, is there a coffee shop nearby? Will they be a competitor or can you work together? Also, keep in mind your potential future. If you see the business growing, make sure there will be room — both physically and in the market.
Keep Foot Traffic In Mind
Are there sidewalks in your area? About three million people are injured in car accidents every year on U.S. roads, so even in smaller towns, some people simply prefer to walk. Depending on how walkable your overall area is, you may be seeing a lot of your traffic and sales from foot traffic alone.
What’s the Parking Situation?
Consider all the options, or lack of options, that a potential customer might have if you were to choose that location. Is there enough room for people to park? Is it all on-street parking or is there a lot? How big is the lot? Is it easily accessible from the street, or do you have to wind through an alley to get in? Easy parking will draw customers, so keep this important aspect in mind.
Consider Transforming a Storage Container
Pop-up shops are small, cost-effective, and booming at the moment. These sorts of shops are getting more and more attention lately, with the current U.S. market value sitting at around $50 billion. Depending on your business, this could be an elegant solution to your location dilemma. Pop-up shops made from old storage containers are a cost-effective way to have a physical location but not be tied to it in the same way as you would be with a more traditional setup.
Utilities and Other Costs
There’s also the continued costs of operating a business from a physical location. Be sure to factor in hidden costs, such as renovations and IT, and check into the varying local costs of the basic utilities, so you can be sure you’re working off of the correct numbers.
In the end, choosing a retail location is a big and multidimensional decision with a lot of moving parts. There are factors to consider both logistically and financially, and it’s going to take some careful planning to avoid accidentally digging your business into a hole. Consider what you know for sure first and do your best to extrapolate what you don’t.