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If you have a retail business, your location will make or break your
business. Your franchise will most likely offer you guidance on choosing a
location, based on their prior experiences. Some franchises even have it
in the contract that you must have their approval on a location before you sign
a lease.
When choosing a location, make sure there is plenty of foot traffic. Is
it close to central transportation, like a subway? If your customer must
drive there, what else is near you that would compel them to stop? The
higher the traffic volume, the higher the rent. Many businesses make the
mistake of choosing cheap rent over foot traffic. An easy way to know if
there is enough foot traffic is asking the businesses on that street, whether
other stores have been closing down recently. If your neighbors are
sticking around, chances are you might to.
Is there competition? Some competition is good, i.e. having lots of
restaurants around your business will encourage people to stop on that street,
and then decide what to eat. However, if you are running a Laundromat, you
don't want one right next door. It will be difficult to differentiate from
your competition with this kind of business. Your service is not unique,
however, a restaurant can be very unique. Just serve food that isn't
offered by your competition.
Make sure that the demographic is correct for your business. If you
only serve teenagers, and you are located in a retirement area, this really
isn't going to help your cause. Check the ethnic, racial and economic mix
of your neighborhood. If you are selling luxury goods, make sure the
people in your neighborhood can afford it.
Try to have your business in a mix use location, you don't want to be stuck
with one population. It's best if your street is used at all times of day
by a wide variety of groups. It's not ideal if you are located downtown
and it's deserted on the weekends.
It is a recent trend that businesses are now moving out of malls.
America is oversaturated with malls, and Americans are realizing how
inconvenient they are to pick up the daily items. Stick to busy main
streets, and convenient transportation or parking.
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