As someone who wants to start a small business, you have to be a good observer. You’ll have to examine a lot of things before actually investing time in establishing a business. You have to make sure that your business model is the least prone to failure.
This is important because the statistics don’t lie. As reported by business loan company Fundera, 70% of small businesses fail in their 10th year. That’s some serious figure to consider, given that the failure rate is high.
Many key factors play into the success or failure of a business. One of them is the business’s location. Poor planning on choosing a business location could lead to the failure of a business. That’s why you should thoroughly look into this aspect of your business planning.
So if you’re choosing where to place your business, consider these things. Here’s a checklist of factors to analyze when selecting a location for your small business.
Somewhere Your Budget Fits
The amount you will spend for the business location should already be allotted. Now, what you’re going to do next is find a place where your budget fits. Take time in looking for places for your business that you can afford. Remember that you’re going to spend a large chunk of your capital. You want to make sure that you’re spending it appropriately. If you have a limited budget, choose a location where you can make the most out of it. One thing that makes a good location is if it can return the expenses you’ve spent on it. That’s by having your business placed there.
Many think that a crowded place can make a viable location for a business. But it’s not as simple as that. There are many layers into considering the kind of crowd in choosing a business location. The type of business you’re planning to start is correlated to the type of people you’d want your business to appeal to. For example, if you’re establishing a coffee shop, you might want to look for a place that’s near offices. That’s where most employees are always on-the-go. People would always want an express coffee to sip in the morning before heading to work. It’ll be perfect if you can have your business placed where your target audience lives or work. If you have a food business, consider a location where people usually get hungry from walking, maybe near national parks or playgrounds. These are a few examples of choosing your business’s site based on the crowd.
Businesses Within the Vicinity
Make sure that you’re not placing your business in a location where competitions are too many. Check the other businesses within the vicinity. You can’t place your souvenir shop in an area where other souvenir shops are found. That’s unless if the items you sell are unique from other souvenir shops. How can you gain profit from a pizza parlor if there are other pizza places within the vicinity? Also, try to look for a location where some businesses are loosely related to the kind of business you have. Say you’re offering dermatological services. In this case, you must find a place where people who need medical services flock. Perhaps you can place it between a dental clinic and an urgent care facility. Examine the businesses within the area where you’re planning to establish yours.
Safety of the Location
If burglaries happen in a place every once in a while, that’s not an appealing place, to begin with. You should prioritize looking for locations where crime rates are low. You don’t want to risk losing assets just because you chose an area where criminals lurk. Try surveying the places you’re considering. Ask neighboring business owners if the site is safe. The main goal is to lessen the risk of having to deal with revenue loss due to crime. Do your assignment by carefully examining the proposed location for your business.
Convenience for Customers
Businesses serve their customers. It’s just right to find a location where your customers would have fewer inconveniences. Say for parking. Customers should have a reliable place where they can park their vehicles. If you’re doing al fresco dining, make sure that you choose a curbside that’s wide enough for your tables and chairs. This way, it’ll be more comfortable for your customers to eat. Place your business somewhere that’s easily accessible to all, including people with disabilities. You have to make it a point that your business location won’t bring much hassle to your customers.
The location of your business will play a significant role in your success as a business owner. That’s why you have to take the time to choose the best location to start your business.