The success of a business is not always built on solid ground. In terms of small businesses, as much as 80% of them fail within the first two years. While there are a number of reasons that can lead to a demise, poor location is undoubtedly a factor. If you are looking for a new space for your retail business, there are two factors you want to remember.
Stay By The Competition
There is a common saying that basically states you should keep your enemies closer than your friends. This is true even in business. Make sure you are choosing a retail space that keeps you close to your competitors, as this can increase foot traffic in your store. Take a customer looking for a pair of jeans, for example. Both you and the competitor carry the same jean line.
The customer walks into the competitors store first, but is unable to find their size. There is a great chance that the customer will simply walk over to your location and check out your inventory. Even if you aren't able to close the sale, you've had a chance to introduce your store to a competitor's customer and they will likely remember your store in the future.
Perform Demographic Due Diligence
Every successful business has a target audience, or demographic. It doesn't matter if you have been in business for some time, if you're looking for a new location it's time to do your due diligence in the area of demographics. It's not enough to assume your customer base will travel to your new location. Many commercial areas have traffic reports that basically include lifestyle data about the people that both live in and frequent the area.
Make sure you get your hands on one of these reports before making your decision. If it's a newly developed commercial area, you should also be able to collect data about the age, household makeup and income of people that live in any nearby areas for further clue of anticipated foot traffic in your store. It's a huge risk to open up a location in an area that hasn't proven to be a frequent traffic area for your demographic, so choose wisely.
A real estate agent can help simplify the selection process for you. From researching competitors in your area to examining traffic data, a real estate professional can give you the confidence that you're making the right choice for your business's needs.
To learn more, contact a real estate company like Realty Executives.
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