Choosing the Right Location (Step-by-Step)
Step 1: Make a situational analysis
Evaluate the potential location using the following questions as a starting point:
- Are there any similar businesses in this location?
- Is the new location a new market?
- Where is our nearest competitor?
Step 2: Analyze your Market Demo
Using the following questions, create and/or update your target customer profile:
- Where are our customers located?
- How old are our customers?
- What is our customers’ profession?
- What is our customers’ income range?
- How do our target customers shop?
- What kind of groups or affiliations do our customers participate in?
Step 3: Benchmark and compare options
Using the comparison analysis explained earlier, analyze the current available locations and verify if there are any other potential options you have not considered. You can also evaluate the compromises you must make while choosing one location over another.
Step 4: Finalize the location selection
Contact your realtor and close on the location you have identified as the best fit for your business. Once this location opens, keep track of its performance through indicators such as:
- Average shopping cart.
- Sales performance.
- Customer traffic.
- Maintenance and HR Costs.
- ROI.
