Tuesday, July 23, 2024
The location of a business: a crucial element for its success
The choice of a business location is one of the most important decisions for an entrepreneur. It can directly influence the success or failure of the business. Indeed, a well-chosen location can generate significant customer traffic, while a poorly chosen location can deter many.
Traffic, a central element in location choice
Traffic is defined as the number of people passing by a commercial property at any given time. It is important to understand that there are different types of traffic depending on the store format:
- Pedestrian traffic: important for downtown businesses, local shops, and restaurants.
- Automobile traffic: important for large stores, furniture stores, and commercial areas.
- Virtual traffic: important for e-commerce sites and omnichannel businesses.
Understanding different customer typologies
It is important to understand that the customer typology differs depending on the location. In downtown areas, tourists and professionals will be predominant, while in shopping malls, the clientele will be more family-oriented.
Determining needs before establishing
Before determining the store location, it is essential to define the needs of the business. This involves analyzing the catchment area, competition, and business objectives.
Adapting to the clientele to increase visibility
It is important to be multifaceted, meaning to adapt to the clientele. This helps increase the visibility of the business and attract a wider audience.
Criteria for choosing a location
- In addition to traffic, several other criteria must be considered when choosing a commercial location:
- The dynamism of the location: a dynamic area with high commercial activity is an important asset.
- Political decisions: urban planning projects and local regulations can influence the attractiveness of an area.
- Competition: it is important to analyze direct and indirect competition to differentiate oneself and attract customers.
- Population density: areas with a dense population offer a larger customer base.
Aligning with the brand and parent company
The choice of location must also be consistent with the brand image and company values. It is important to consider whether the parent company is likely to invest in the location and if the location aligns with its positioning.
Tips for choosing a commercial location
- Pay attention to rental values: rent is a significant cost for a business, so it is important to choose a location where the rent is proportional to the potential turnover.
- Let the franchisee make decisions: the franchisee is the one who knows the local market best, so it is important to let them choose the location.
- The city can be an ally: some cities offer financial assistance to entrepreneurs to help them establish themselves.
- It is up to the franchisor to find the location: the franchisor has a better understanding of the network and the company's needs, so they are better placed to find a suitable location.
- Obtain rent franchise: this avoids paying rent for the first two months of activity.
- Always be in agreement with your lawyer before signing the lease: it is important to understand the lease terms before signing.
- Recognition of the location by third parties is important: a well-known and recognized location by customers is an important asset.
Choosing a business location is a complex decision that must be made taking into account many criteria. By following the above advice, you maximize your chances of choosing a location that will contribute to the success of your business.