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Brands become iconic when their products are...
If you are considering joining a franchise that requires you to have a physical location for visitors to frequent, it is not as simple as signing the lease for the closest commercial property to you. The right real estate can have a dramatic effect on the success of your new business venture, so before you jump in feet first, here are some tips to help you to select the right site for your business.
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Location
The location you select must be easily commutable for you and situated in an area that is populated by the demographic you will want to attract. It must also meet the accessibility and size parameters set by your franchisor. Good commercial properties are highly sought after, so understanding your requirements means that when you find the right site, you'll be able to act quickly, confident that it will meet your needs.
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Demographics
You cannot select a location if you don't know your target demographic. You should assess the type of people who will want to buy your products or services. How old are they, and what is their background, cultural diversity, income and education level? By identifying the type of people you wish to attract, you can conduct market research into their shopping habits and situate yourself in an area that they frequently visit.
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Costs
Commercial properties tend to attract high lease costs, property taxes and maintenance fees, and that is before you perform any necessary renovations and set it up in accordance with the standards set by your chosen brand. Discuss your situation with your franchisor and seek their advice; they will have vast experience in setting up new franchisees and will be able to give you a rough estimate of the costs that you should expect to incur while setting up your new site.
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Growth potential
If time is on your side, perform some research to find out whether the area in which the potential site is located is earmarked for development, and if so, what the timelines are and what the intended outcome is. Redevelopment of a retail area could result in a higher foot traffic that would ultimately benefit your business, but this must be weighed against the potential disruption experienced during the construction work.
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Competition
Research which other businesses are operating in the area, particularly if they are offering similar products or services to those supplied by your business. While healthy competition can drive efficiency, it can also be a barrier to becoming established as the other business may have already captured the market in your area. Understanding what other businesses exist will help you to determine whether there is demand for your products and services or whether you should look elsewhere.
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In short, conducting the right market research into these five key areas will help you to develop a good understanding of consumer behavior and industry trends in your area, guiding you to a successful outcome. It can be hard to extricate yourself from a commercial property rental agreement, so take the time to make sure that your chosen site is right for your needs before you sign on the dotted line.
