“Location, location, location” is a common and all too familiar phrase. As you may have also heard, location can make or break your business. So when it comes to choosing the location for your business a comprehensive review of the potential location will certainly prove time well spent.
Deciding on the best location for your business is probably one of the most important decisions you will have to make when setting up your business. For a retail business that has not built a loyal following, location is very important because many of the customers will not go out of their way to find you. It is an obvious fact that your business will succeed if you serve as many customers as possible effectively and within the shortest time possible.
For you to serve these customers, they must first know that you exist and how to find you. In addition, they should not go to great lengths to either locate you or reach you. If they have to do this, chances are that many will look for alternatives, and if they succeed, you may never see them again. Many customers will not find it convenient to squeeze through alleys and hidden corners to get to your business.
Depending on your business, you may have to choose a location that has high foot traffic, and not just passing foot traffic. Passing foot traffic will not translate into the required sales. These people must see you, meaning your business must be easy to spot. Of course you must have a winning product and a good price too, but how many will know that unless you get them through the door? Probably none.
Think of a time when you have wanted to buy something or get some service, could be you wanted to withdraw some cash from an M-Pesa shop, buy something from a shop or even from a stall. You probably went to the nearest shop you could get or the most accessible. There could have been many others but your choice may have been based on convenience. When setting up a business, think of the people that you expect to serve, how easy will it be for them to spot you and reach you?
The location of a business can affect its overall performance. Total sales can easily be affected, hence profitability. This is of utmost importance especially if you intend to sell products or services directly to customers at brick-and-mortar establishments. For example, a car wash located next to a major road will easily attract more cars than one located in some interior path, away from any main road and it is easy to guess which one will succeed.
Location can also affect your ability to market your business. If your business is located at the front row of any market or busy street, you will attract more customers with signs and displays than one that is located deep inside. Therefore, whenever you think of choosing a location for your business, remember that location can be a marketing tool for your business. Setting up in the wrong location may force you to spend money and effort trying to advertise and direct people to your business.
If you locate your business in a place with many other similar businesses, you are likely to face stiff competition for customers. If you research well, you may identify a location with few direct competitors and this will increase your likelihood of attracting more customers. For some businesses, however, locating in a place with many similar businesses can be a great advantage.
It is also extremely important to locate your business close or amongst your target market, especially for businesses that serve a certain category. If your business targets young families, look for new estates coming up. If you target cars, such as a garage business, look for an area with many cars and if your business sells food, look for a place with many people. It does not make business sense to set up a very good business in a place where there are very few people who will be interested in the service offered or goods sold. This is why you will find many kerosene pumps in slums.
Next time you think of setting up a business, pay very close attention to the location that you select. If you set up in the wrong location, this may just be the beginning of the failure of your business. Your business may fail before it starts.
Posted on Kenya Business
Originally posted 2015-07-25 19:40:18.