Location, Location, Location

… From Biz2Biz NWA, March 2010

By Steve Ferguson / Chapter Chair / NWA SCORE

If your business is selling to other businesses – B2B, for short – then having effective marketing and distribution mechanisms may be more meaningful to your success than the actual physical location of your business.  Businesses selling directly to consumers – retail or B2C – need to address the location of their business more specifically because it directly affects selling success.

How many times have you heard that “location, location, location” mantra for retail success?

Assuming you know what you need – and if you don’t, a commercial REALTOR or SCORE counselor can help you – the trick is finding that ideal location. While it does require some degree of research, much of the information is readily available from a variety of sources. And the process will serve you well; most other types of business decisions require the same steps of information gathering, analysis, and careful thought.

Here are some steps to help you.

• Define the type of retail business you want to operate. What sort of business do you want? What target market do you intend to appeal to? How do these people behave (that is, shop)? Where are other, similar businesses located?  Have they been successful in those locations or is there frequent failure and turnover?

• Is your potential location and store compatible with other stores already in the area? Neighborhood business can help your store or hurt it. You’ve got to understand what types of businesses generally cluster together and which are incompatible. Auto dealers tend to cluster and generate traffic for one another. A good restaurant in a small shopping center may generate visitors for other stores. However, an upscale boutique may not fare well next to a super store or discounter.

• Unless you have these basic questions answered in your mind, you will not be able to make a sound decision about an appropriate location for generating revenue for the business.  To aid your decision process, you can obtain location demographics by visiting your local library, chamber of commerce or city hall. You can also obtain this type of information from the Census Bureau at www.census.gov.

After evaluating these issues, you can drill down to detail questions that help you move from selecting a desirable location and building to working out the details that make the decision a reasonable business arrangement.

Although new construction is an option, in this market it may be more economical to consider leasing space.  Again, this is an evaluation with which your Realtor can help. Be sure to take full advantage of the information resources available to you before you make a decision – or sign on the dotted line.

And remember, business location is just one factor affecting your probable success.  To learn more, contact NWA SCORE at info@nwascore.org, www.nwascore.org, or 479-725-1809.

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