A proper location will help you to generate maximum sales. Location plays a major role in the retail business. A good location means you can gain huge amounts of profit from your retail store. The location of your retail store will determine how big you and your business will grow. But, is it easy choosing a location?
There are a lot of factors that are directly related to how you should pick a location for your retail business. There are multiple aspects of business that are to be evaluated before choosing a retail location. Here are some of the major elements you should consider while choosing a location for a retail store.
10 Factors to Consider While Selecting A Retail Store Location
1. Understanding The Type
You need to understand your business first. The retail location differs for different businesses. You have to understand your type, is it a boutique, a fast food joint, or a grocery shop? The business for each type has a specified crowd. Get your basics right while you are choosing a location for your retail business.
The products you will sell and the number of staff you require are going to decide the space you need. Calculate your requirements before choosing the storage space required at the location.
2. Arranging The Finance
Getting a retail location involves a considerable amount of investment. It’s important whether you will be able to afford it or not. You can’t just go and choose a location that may be way out of your costs. If you are going for a loan, do your maths properly. Estimate your daily footfall and operational costs before you finalize a location.
Visibility plays a major role in the retail business. The more you are visible, the more your chances of generating sales. Understand how easily you are accessible to a pedestrian or any automobile traffic. Also, keep a check on how close you are to the streets. Experts recommend retail businesses prefer a location that is closer to the street and visible to the maximum number of passers-by.
4. Understand Your Target Market
Before you choose a location for your retail business, research your target market. The retail location offers you to work in a fixed location, so you can’t go wrong with your demographics. Chalk out your target market, who is going to shop at your place, who are the people often passing by, and the geographic area you are situated at.
Also, keep a check on where your employees stay and whether they are able to commute to your store easily or not. Retail business needs proper staff, so make sure your employees have easy access to your proposed location.
5. Check Stores Nearby
If your location has stores selling the same type of products you sell, this will have a negative effect on your business. Try finding a location that will complement the businesses surrounding you. Complimentary stores in close proximity often experience higher footfalls and sales compared to locations with the same type of retail shops.
6. Consider Convenience
Make sure your retail shop is convenient for the visiting customers. This primarily involves the type of commute available around you. Consider your clients and ensure they experience no hassle. A bad experience means a gloomy effect on your business and negative word of mouth could harm your retail business badly.
7. Legal Compliance
Several cities around the world have very strict zoning requirements. Zoning means how a municipality is dividing itself into multiple zones. These zones have certain land uses which are legally permitted or prohibited. So, make sure you go through all requirements and prohibitions before you make any final deal.
Different cities have environmental regulations as well. Ensure you abide by all the environmental regulations which may impact your business.
8. Facility Requirements
Understand your daily requirements. Check whether you need certain raw materials on a daily basis or do your business has any special needs. This includes materials to be imported, high power consumption, or any type of specialized wiring. If your retail business requires any type of special facility, you must ensure beforehand that all these requirements are met within your locational facility.
Understanding the mindset of your customers is important in the retail business. If you choose a location where most of the population is above 45 and you are selling gaming consoles, you will be out of the competition even before you start. Before choosing a particular location, do your research and have an in-depth knowledge of your target market.
10. Business Promotion
You just can’t stop choosing a good location. You need to put out your business and promote it. Awareness is your next step. Let people know you are here and this is what you sell. To start with, you can promote offers to attract more crowd and greet with them add-on offers so that they visit your store again. Maximize the footfall as much as possible.
Always choose a location that will help you serve the best needs of customers. These are the points you need to consider before choosing a retail location to achieve your business goals.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.