Importance of Choosing the Right Location for Your Business
When it Comes to Business, Location is ONE Important Key to Success
You could have the best business idea in the world, guaranteed to be successful. Open your business in the wrong location and you just turned a successful business into a failing business.
Here's a story to make my point
In my town, a new pizza place opened up a few years back. I thought I'd try it.
As I drove into the place, I couldn't help thinking, "This place is hard to drive into.” It's on a four-lane road with no stoplight.
While I was waiting for my order, I couldn't help thinking about the best way out. Take a right, go down to the next light, and pull a U–turn. Or wait for a few minutes to take a left, which was the direction I needed to go.
Rather than thinking about the new business, my mind was focusing on the best way out.
I never returned because of the inconvenience.
The place closed about three months after that. Today I drove by the same location only to find another pizza place opened up there.
My prediction: they'll be closed also. With all the competition in today's marketplace you need to eliminate inconveniences, not support them.
How successful do you think you would be if you had a women's dress shop out in the country?
Not very much,
On the other hand, a women's dress shop located in a high traffic mall would have a much better chance of success. These two extreme cases are simple examples of what many business owners overlook.
You need to find the balance between getting the best location while keeping rent or lease costs down to the point where they won't kill your business and you can keep the business financially stable.
Let's have another look at the women's' dress shop example. If you're paying thousands of dollars in rent at the mall, but your business can't support the high rent, then how long do you think your business can survive in that situation? Not long. If your profits can't pay the rent then you need to increase your profits quickly or find a, less than prime location.
You need a location that is convenient for your targeted customers, in an area that is where your customers are situated, and one that won't break the bank in rent costs.
When You're Considering a Business Location, Ask Yourself These Key Questions:
1. Is this area where my customers are?
2. Can I afford to pay the rent?
3. Am I in the best location for the money I'm paying? or can I pay a bit more and find a better location
4. Is this location convenient?
5. Is there anything that may keep my customers away?
Locating Tips:
A good business location consists of:
Locating close to your customers,
Locating in a convenient place for your customers,
Locating in A place that your can pay the rent without difficulty
That's the way I see it.
Acey Gaspard
For Major Differences between Islamic and Banking System, click HERE to view the complete article.
***************************************************************************
COMMENTS:
I listed some of the critical factors you need to consider when choosing the best location:
* Costs = entrepreneurs may be forced to go where they can afford the rent or where they can operate more efficiently.
* Security = the quality of the neighborhood also greatly affects the decision of where to put your business.
* Availability = many entrepreneurs locate where there is available space at the time when they are planning to open.
* Infrastructure = sometimes location decisions are based on selecting an area where there are many business professionals to support entrepreneurs
* Personal considerations = the location of a business may depend on how far you want to drive each day
* Taxes = choosing a location oftentimes is a compromise between tax relief and potential for profit generation.
If you want to form a business, either small or big business, choosing the location of the business should be the major point that you need to look into. It will gave the big impact throughout your business operations.
No comments:
Post a Comment