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Are You in the Right Place

We heard that you are all set to start up your own business. That’s simply great! But remember, entrepreneurship involves a lot more than just framing an idea and starting a company. For those who want to set up a store, perhaps the most important decision is identifying the right location for their retail outlet. Experts say that first, you need to build your own understanding of the new project, then you have to identify your target customers and finally, you must choose the location accordingly. This is something which will not happen overnight and it requires an immense amount of research work beforehand. And of course, we are always there to help you!

High street could mean high profit. In case you are ready to incur a considerable amount of start-up costs, go for a location that is commercial in character. Try to grab a site that is on the high street or in the primary business borough of your city. This will definitely give you a presence among the top brands. Take our word for it - at least fifty out of hundred shoppers will step into your store to try something new when they come to shop for other known brands. That way, you can build a clientele without having to incur heavy marketing and advertising costs.

Competition is healthy enough! It is highly likely that the field in which you are venturing already has well established players. Don’t think twice about opening your outlet just next to them. Watching and learning from rivals will help you to run your business more efficiently, especially when it comes to your first shop. Let me remind you of the McDonald’s - Burger King story. These big corporations, despite being tough rivals, seem to be little concerned about the competition they face from each other. Usually, the presence of a McDonald’s increases the possibility that a Burger King will arrive. You must have noticed how close they locate their fast-food joints in shopping areas. The two giants say that they use this rival presence to upgrade their own performances!

Go where your customers are. Yes, first identify your target customers and only then choose the location. Do your products have something to do with small kids and their moms? Open the store near schools or residential areas, if permitted. For coffee shops or fast-food stands, even for trendy clothes, sites near colleges are ideal. When Starbucks entered France, the company was aware that French coffee lovers may not accept its American-style brew. However, the young generation was excited about hanging out in Starbucks. Why? They wanted to sip the coffee they saw in their favorite TV-show ‘Friends’. Seizing the opportunity, the coffee giant opened its all introductory outlets near colleges and tourist spots. And, along with vacationers who wanted to taste Starbucks’ beverages, the local students eventually made it a ‘trendy teen hangout’.

Do a demand check. When choosing a location, apart from other considerations, don’t forget to check the demand. Sometimes it may happen that despite opening your outlets at very commercial, chic places, you do not succeed. The reason might simply be a lack of demand for the products you are trading in. Swedish furniture group, Ikea, learnt the hard way when it entered China in 1998. Chinese apartments are small, with an average size of 113 sq meters. No wonder, the Chinese showed little interest in their stylish furniture!

In short, you need to keep a lot of things in mind while zeroing in on a location. Don’t worry, it’s not that tough as long as you exercise some care while making the decision!

About the Author

Hi, I'm Akhil Shahani, a serial entrepreneur who wants to help you succeed. If you like to work smart, check out http://www.SmartEntrepreneur.net . It's full of articles and resources to help you start and grow your business successfully. Please visit us & download our special "Freebie of The Month" at

http://www.smartentrepreneur.net/freebie-of-the-month.html

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