Years ago there was an executive with McDonald’s who said that McDonald’s doesn’t specialize in burgers as much as being a real estate conglomerate. That is a true statement. McDonald’s flourish depends on their locations. The chain is strategically placed for customer convenience. On any busy highway there are numerous McDonald’s that line the exits. When I am looking for an award winning burger and fries, I don’t immediately think of McDonald’s. However, when I travel, it is easy to pull through the drive through and generally in an area that I am able to quickly jump back onto the highway. When choosing a location for your store or business are you looking at locations that fit your needs or the needs of your customers?
Riding through rural Alabama, I passed by a yellow house that had been transformed into a cake shop. The location was surrounded by many industrial buildings, inexpensive housing, and it say on a two way busy highway. I immediately thought, “wow what an incredibly oddly placed cake shop.” Admittedly, I do not know if this cake shop is successful or anything about it besides its location. I can’t imagine that many of the employees of the industrial sites adjacent to this shop are popping in for cakes to go and looking at the housing that surrounded the business, I do not think that their budgets include purchasing a cakes.
If you are in the stages of launching a brick and mortar store, it is important to make sure that your location fits your customer’s needs and not just your budget! Location is important and can either make your business a success or failure. Below are some questions you should be able to answer before picking a location:
1- Is this location convenient, easy to get in and out of?
2- Is there parking? (if you are in an urban environment this won’t be such an issue)
3- What is the competition in a 1 mile radius? 5 mile radius? 10 mile radius?
4- What are the demographics in the area? Are these the demographics I am targeting for my products?
5- Do I really need a physical retail location? Could my products be better served as an e-commerce product?
Providing you with the questions you should ask yourself regarding your business and helping you search out the answers is just the start of what we do at Brand X Consultants when we come in and do a new business analysis. We pull together a detailed analysis of the market including an analysis of your competition, their services, product lines, pricing, and who they are servicing in the market place. A thorough analysis of the market is part of a comprehensive approach to choosing the best location for your business and is just a start to ensure you launch your business in the perfect place.