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Thursday, October 30, 2025
How to choose the right city to start your business?
When you decide to open a business, choosing the right city is a crucial step. Several factors come into play, including economic dynamism, the profile of its residents, and commercial potential. To avoid mistakes and maximize your chances of success, here are four key tips shared by the media outlet tousentrepreneurs.com to help you choose the right city for your business.
1. Expand your perspective beyond the city center
The natural reflex is often to focus on the city itself. However, commercial potential is measured at the scale of the territory , not just the municipality. Before validating your location, analyze the flows: where do consumers come from? Which surrounding cities do your future customers frequent?
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Some small towns benefit from a strong regional influence , attracting visitors well beyond their residents. Conversely, others, close to a major metropolis, may suffer from competition. The challenge is therefore to assess the actual catchment area , not just the number of inhabitants.
2. Analyze local demographics and dynamism
An attractive city is a city that moves! Before opening your business, take the time to study the evolution of the population , the installation rates , or even the development projects .
Mapping or geomarketing tools, such as Google Maps or specialized platforms, allow you to identify the busiest commercial hubs and growth areas. This analysis is essential for identifying promising locations and adapting your offering to local demand.
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👉 For franchise project leaders, this step is often made easier: the networks already have precise studies on the best locations.
3. Understand the specificities of the territory
Each territory has its own identity: consumer profile, purchasing habits, seasonality, purchasing power... These elements directly influence the success of a business.
A fast-food concept won't work the same way in a college town as it does in a seaside resort. Study local data (average age, household composition, mobility, employment) and observe the competition: is it dense, complementary, or, on the contrary, saturated?
👉 If you join a franchise network, the head of the network will be able to support you in this study of the suitability between your project and the territory .
4. Test your intuitions in the field
Figures are essential, but nothing replaces direct observation . Walk around the neighborhoods you're considering, talk to the residents, and observe the traffic at different times of the day.
This immersion will allow you to confront your hypotheses and concretely evaluate the potential of a location.
And beware of preconceived notions: a city you "know well" is not necessarily the one that will offer the best business prospects. Objectivity remains your best ally.
Choosing the right city to launch your business requires method, curiosity, and open-mindedness. By combining data analysis, local knowledge, and expert support , you will maximize your chances of success.
And if you opt for the franchise , you will also benefit from proven know-how and valuable support in selecting the best location.