While many companies have opted for the virtual office and allow employees to work remotely, there are those who still need a brick and mortar location to thrive. However, when companies don’t do their research, they often end up making poor decisions when it comes to picking their first location or expanding into other markets. If you’re on the hunt for the right place to open up your business, here are five mistakes you absolutely must avoid making so you don’t hinder your company’s success.
Mistake #1: Choosing a location nowhere near the target market.
Before you purchase or rent a property, you need to understand your target market. This means you need to spend money on research and find out who is most likely to purchase your product or service. Then, and only then, should you decide on a location. If you don’t do this, you’ll end up choosing a location that doesn’t make sense. For instance, if you’re opening a store that has a female target market, you’ll want to ensure your location is nearby other places females will frequent. The same goes for males. If you choose a location that doesn’t appeal to your target market, your business will fail quickly.
Mistake #2: Not doing a thorough inspection.
If you believe you’ve found a place to open your business, you need to ensure you do a very thorough inspection of the property before your buy/lease it. This means not only looking at how it will service your business appropriately, but also looking to ensure there aren’t any underlying issues, such as mold, water leaks, or electrical issues. According to the plumbers at Fix It Right, “Water leaks and water damage are the most overlooked issue in new properties, but they’re often the ones that create the most expensive fixes.” If you want to keep your business profitable and put more money into the business than the location, then you’ll want to have professionals inspect the property before signing any deals.
Mistake #3: You don’t think big picture.
In most cases when looking for property, most business owners tend to think of the right now, and this can be harmful to your success. If you really want to focus on growing the business, then make investments that will allow this to happen. For instance, if you own a bakery but would like to one day soon have a dine-in restaurant attached, then look for a location that would allow this to happen. If you don’t think of the big picture, you’ll miss opportunities, and you’ll just end up having to move your business down the road, and that’s not always a smart idea. Instead, be sure to have an idea of what you want for the company, and then make a decision based on that information.
Mistake #4: Ignoring talent.
When you have a business, you need to have talent to work at your business and make it fully functional and operational. However, if you put your business in a remote location, you’re not going to have access to the same type of talent you would in a busier market. For this reason, you really need to think about location and the talent it provides. If you want access to a bigger pool of potential employees, then you’ll need to put your business somewhere that has a big population of talent nearby.
Mistake #4: Being too remote.
While being too remote can hinder the type of talent you have, it can also hinder your customer base. For instance, if your business requires people to visit you and you’re too far away or just not easily accessible, you’ll see your sales start to drop. Be sure to pick locations that are easy to get to, such as close to major expressways or that come with plenty of on-site parking. In addition, be sure to put yourself in an area that sees a lot of traffic. With this, you’ll have a great time reaching new people and growing your business.
Mistake #5: No visibility.
While you can put a big into your company’s online marketing, you’ll still also get foot traffic when you do some traditional advertising outside your location. When choosing a place to set up shop, be sure you have access to outdoor signage or other avenues where you can let people know where you are. Even though it may not be much, the foot traffic you’ll receive from this signage will help to expand your operation in a good way.
If you need a physical location for your business, be sure you’re not making any of these mistakes.
Will is the Executive Managing Editor at Feedster. Will and his team from Content HOW work with venture capital, marketing co-ops, and companies to attract and gain qualified leads.
His primary focus on developing a sales funnel for a company and finding out of the box / growth hacking style ways to convert and drive traffic.