CHOOSING THE RIGHT LOCATION

• Home-based business


  Lower startup cost, franchises less than $30,000 to get started, work out of home, usually no employees
• Retail business


  Located in strip centers, malls, and other physical locations, can be food or service businesses
• Mobile business


  Service businesses that bring the service to the customer's home or business, e.g. food trucks, dry cleaners
• Commercial business space


  Small warehouse with office space in front, e.g. painting franchise with truck and storage
• Choosing business location

  • Consider the type of business format/location needed
  • Target customers and their demographics/psychographics
  • Consider the brand and its reputation
  • Consider recruiting efforts and proximity to employees
  • Analyze competition in the area
• Franchise companies provide data and expertise to help franchisees find the right location
• Franchise companies can help negotiate free rent and other lease terms that individual businesses cannot
• Choosing the right location is one of the most important factors for the success of a business
• 5 essential principles in choosing a right location

  • Decide on a Business Location Type
  • Target Customers
  • Consider Brand
  • Think About Recruiting Efforts
  • Search For Competition Areas
• Business Location Type

  • Home-based business
  • Retail business
  • Mobile business
  • Commercial business space
• Target Customers


  Know your demographics and psychographics
• Target Customers


  • Dollar General builds their locations in lower income areas
  • Whole Foods tends to target individuals and families whose income is well above the national average
• Consider Brand


  Consider the reputation certain locations would carry for your brand
• Consider Brand


  • Probably wouldn't put a hardware store next to preppy shopping outlets
  • Likely want to avoid more dangerous areas of the city, even if commercial property is cheaper there
• Think About Recruiting Efforts


  Consider transportation routes and proximity to population dense areas
• Think About Recruiting Efforts


  • Can be hard to recruit employees at a remote gas station, even though customers may pass through frequently
• Search For Competition Areas

  • Low Competition
  • High Competition
• Search For Competition Areas


  • Search for locations where you consider the competition, and your product or service is still in high demand
  • Consider areas where other businesses on the block are complementary
• Franchises


  They support you, and go the extra mile by providing data you would never be able to discover through your own research
• Finding the perfect location can be difficult and time consuming, yet by some measures, it is perhaps the most important factor to the success of your business