1 EP2150 – Entrepreneurship Paul Tilley Considerations in Choosing a Retail Location: 1. How are...
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EP2150 Entrepreneurship Location EP2150 – Entrepreneurship Paul Tilley
1 EP2150 – Entrepreneurship Paul Tilley Considerations in Choosing a Retail Location: 1. How are your customers going to use you? This is a very important
Considerations in Choosing a Retail Location: 1. How are your
customers going to use you? This is a very important first
consideration that many small businesses miss. For example: if you
are opening a lunch counter, you may do better in an area where
people work rather than where they live. If you are selling auto
parts, you want to be fairly close to the local repair shops. Think
about when and how your customers will access your business. EP2250
- Small Business Development2
Slide 4
2. Look at Logistics Is there enough parking? If you need a
loading dock, is there one? Will there be any special
infrastructure needs - power, water, trash removal etc.? Is access
to the location easy for the customers, or will they get lost? Is
the location in a part of town with increased crime at night which
may cost you dearly in insurance or shrinkage? EP2250 - Small
Business Development3 Considerations in Choosing a Retail
Location:
Slide 5
3. Good Traffic Bad Traffic Not all foot or drive-by traffic is
created equal. However, some locations will charge huge prices for
the amount of foot traffic. It's a good idea to be near other
businesses that attract customers like yours. Do you ever wonder
why car dealerships and restaurants will open so close together?
Because car shoppers and diners will go to an area to window-shop
and everyone benefits from the spillover. At least spend time in
the area you are considering and notice the other businesses and
who's shopping there. EP2250 - Small Business Development4
Considerations in Choosing a Retail Location:
Slide 6
4. Consider Cost Retail space in malls is pricey. The foot
traffic and promotions malls do can bring in a lot of business.
However, there's still high turnover at many malls. The most
expensive spaces are not always the most profitable. EP2250 - Small
Business Development5 Considerations in Choosing a Retail
Location:
Slide 7
5. Look at History Every town has at least one retail or
restaurant location that spits out business failures over and over
again. It always amazes me to see a space where a new restaurant
opens at least once a year. If a space seem to have a high rate of
business failure, maybe there's something not working there. EP2250
- Small Business Development6 Considerations in Choosing a Retail
Location: