Whether you are opening up a new shop or relocating your existing business, where you decide to go is essential to the overall aspect of your business. The right location can both boost sales and keep your doors open, or it could end up making you close the doors.
There are many factors to consider while you decide where to locate your business. From operating costs, accessibility and even taxes, these all influence the overall performance. Whether you are looking in a small town or at real estate in Calgary, the same goes for both.
Here are a few reasons as to why you need to seriously consider your location before you open up the doors.
The Accessibility of the Location
If you are in an area of town where people won’t even realize you have a business, you won’t see very many customers. That is why being accessible to the public is critical to the survival of your business.
When you determine what type of business you are running that should influence where you locate your shop. For companies that sell services and products to customers, being in an area that sees a lot of traffic will be ideal. If a customer has to drive around in a run-down part of town, they might not be keen on visiting.
The Operating Costs
Where you locate your business will influence your operating costs. Quite often, an area that is downtown and popular for people to visit will be more expensive than an area far away from the public.
So before you make your decision, you want to factor in how much it will cost you to run your business at that particular location. Will it be worth the higher rent for a store-front spot? Or will you be able to make due farther away but with more marketing? As appealing as the store-front location may be, the cost of operating could put you into debt.
The Demographics of the Area
You will want to factor in who your target audience is for your business while you decide where to locate. Going into the wrong neighbourhood could end up being detrimental right from the start. Knowing your target audience will help determine what end of town and in which neighbourhood you should be in.
Consider who your competition is for your business and how much it can handle. Being located near competition could be a good thing. It allows people to compare different stores, or you may get the overflow of customers. But it could also be a downfall. Would being near an existing competitor make it harder on the marketing end? If you are worried about competing with an existing store, you may be better off located somewhere else.
So while you decide where you want to open your business or relocate, consider some of these factors before making your decision. Being in the wrong location could cause your business to fail. But by finding the right spot, your business could thrive with little work needed.