When it comes to retail success, location is a huge part of your new store’s value equation. Find out how to keep your business from location suicide.
“Location, location, location.” “Location is everything.”
Those phrases have been taunting new store owners and planners for years, but we recently shot a hole in the completeness of this theory, when Scott focused on the true key to retail success; trust.
Because trust is something that is difficult to earn from a consumer and very easy to lose, developing trust in your brand is essential and we believe, key, when striving to build your customer base and keep them loyal.
That being said, location may not be everything, but it is something. In fact, Irene Dickey, lecturer in management and marketing at the University of Dayton’s School of Business in Dayton, Ohio believes,
careful determination of new sites is critical for most retail and consumer businesses.
As a retailer, you may have an outstanding product or service, but if your location prevents the consumer from discovering it, your product won’t really matter in the end, anyway.
In order to combine the two elements that are crucial to business success, Forbes contributing writer Peter Cohan insists, “ if you want to build, develop and sustain vital trust relationships between you and your startup’s customers, supplier, employers, mentors and investors, you must meet with people in-person repeatedly.
Your startup can fail miserably or succeed contagiously, depending on the quality of the people and your relationships with them. Part of that quality depends on where you locate.
Pick the right location and your start-up gets the resources it needs to grow. Pick the wrong place to run the company and it withers in the struggle to get them.
If your goal as a business owner is to attract and retain loyal customers, ask the following questions before selecting your business location:
1. Brand Image
Is your location consistent with the image you want to maintain? If you are opening an upscale salon your ideal location would not be in a neighborhood flanked by pawn shops and quick loans. Brand image should be consistent with location.
Are the businesses around you complementary or in competition with your new store? It’s not necessary to shy away from your competition, but you don’t want to be the third yogurt shop within one mile, either. Check out the competition before you commit to a location.
3. Local Labor Market
It’s crucial to ask the question, “does the area have potential employees?” If the location you are leaning toward is remote, creating a long drive for potential employees, that will hamper your bottom line.
Consider the crime rate. Will your employees feel safe while getting out of their cars to come into work? Is it safe for employees to leave the building after dark? If you choose a location for your new store because the rent is cheaper, but the location is hazardous, you risk losing employees and vandalism to your own property. Do your crime report homework before you commit.
5. Zoning Regulations
Nothing could damage your sales potential more than finding out that your type of business operation is not allowed, due to zoning restrictions. Contact your local planning agency to confirm that your type of business operation is permitted in that particular location.
Location matters. It may not be the only thing that matters, but by minimizing the importance of your new store location, you could be committing location suicide. Location is a huge part of your value equation. Just by doing a little homework, choosing wisely and enlisting the help of a professional to help you location search, you can spike your business value instantly.