Choosing the Right Location Has the Power to Make or Break Your Business

Before you even think about opening doors, one of the most critical choices you can make is determining the best place to set up shop.

Location matters.

It is one of, if not the most, important aspect of optimizing your business’ success.

Before you determine the location, however, you MUST do this first:

One of the key parts of a business plan is determining to whom you will be catering your products and services.

Will you be selling to the wealthy? College students? Health fanatics? Fashionistas? Mothers? Fathers? Men? Women? Children? Adults?…

If there are a bunch of businesses nearby that sell to young people but you plan on selling to old people, that’s not the best way to maximize potential profits and walk-ins…

You want to surround your business with other shops that your customers will also enjoy, ideally in a different sector.

For example, if there is a pizzeria next door, it would be very bold of you to open a pizzeria right next to it. The tenant will likely not allow it anyway, but you want to stand out, not blend in!

The demographics you plan on catering to have to be established before choosing a location.

If you don’t plan on selling to the wealthy, there is no reason for you to set up shop in a high-income area.

All of these factors are important because when choosing a location, you have to take into account the surrounding area and shops, average income, lifestyle, education level, interests and tastes, and how other businesses in the area are performing.

Once you have established the demographics you intend on catering to, you can then move on to the step of choosing the location of your business.

The factors you must take into consideration of the town/region you plan on opening your business.

These factors will allow you to develop the best products and services for your ideal market.

1. Average Income Level

The average income of residents and those who frequent the area is so important.

Income level determines a lot about the types of people you will be selling to and their expectations.

It will also play a huge role in the amount you can charge for your products and services, and your methods for marketing.

It will also determine whether or not the majority of residents are employed or not. Of the couples and families who live there, does the woman tend to stay home while the husband works, or do both partners work?

Observe and find out everything there is to know about the community and its residents.

2. Typical Marital Status

Marital status impacts the behaviors of your potential customers.

Married people behave differently than those who are single or dating around. Each group shops at different hours, has different priorities, and thinks much differently from one another.

If the community is mainly filled with families or those who have children, it will affect your business model.

3. Interests & Hobbies

What do the people in the towns you are checking out do in their free time?

Do they spend time with their kids at the park? Do residents work a lot? Do they eat out or cook at home? Are the women (and men) high-maintenance?

Do they travel during the summer and send their kids to camp, causing business during the summer months to slow down temporarily? This tends to be the case in wealthier areas, whereas it might be the opposite in lesser-income neighborhoods.

The hobbies and interests of each community vary. This is so important to observe and understand when scouting potential locations for your business. Having all of this information at hand will impact where you decide is best to open shop.

You know the demographics you are trying to reach. Are the locations you are scouting most fit for your ideal market?

4. Education Level

The education level of your customers and potential clientele matters

Those who are well-educated also behave much differently than those who have a lower level of education.

One group is not better than the other, but it is an important factor to take into consideration. In order to have the most comprehensive understanding of your customers and their potential desires, you need to break down your ideal customer into every category imaginable.

Innovation is key to a successful business. If you can get ahead of the game on trends and anticipate what your clients will want in the future, you will make more money and build an impressive reputation.

5. Preferred Method of Transportation

How do most people within the area get around?

The average person’s ideal method of transportation will impact your business’ accessibility and reach.

Do most people within the area drive, walk, or take the bus or train?

Is there enough parking at the establishment? Do people who shop in the area live there or tend to come from other areas?

Did you find these tips helpful? Don’t forget to share!

READ MORE: How to Build a Recession-Proof Business

ABOUT THE WRITER:

Elena Patestas is a journalist and writer for Valuetainment media. She attended Pepperdine University in Malibu, California, and Adelphi University on Long Island, New York. She was born and raised in Roslyn, New York, and currently lives in Miami, Florida.

Elena is passionate about bringing positive change to our world and believes education is the root to solving many societal problems. After overcoming a chronic health condition, Elena became passionate about health and believes food is the key to preventing dis-ease and achieving optimum health.

Amongst her many goals, she hopes to bring positive, impactful change to our world to create a healthy, financially sound, and unified society.