Where you put your store matters a ton! A good spot makes it easier to get sales and grow.
A bad pick can really limit success. Opening a new store branch costs money – rent, moving, hiring staff. Starting fresh in a second location requires extra funding upfront. If low on cash, you could get a business loan in the UK to cover those launch expenses. The lump sum helps pay for things like equipment, inventory or renovations. Owners repay on a schedule over months or years. It is useful when you need more funds to get a new branch going.
Picking the right spot from the start avoids hassles later on. Where you set shapes how smoothly your biz runs daily. It impacts who can conveniently shop there and how fast you build a customer base.
Analysing Local Demographics
You need to learn about the people living around where you may put your new business. Finding out what the area’s like can help you choose a good spot.
First, look into population density – how many people live in one neighbourhood. Go to places with lots of people packed into a small area.
You can check out age distribution too – if more kids, working adults or elderly live there. Toy stores do best where there are a lot of families with children. Medical offices fit well in communities with more retirees.
You can check income levels as it matters greatly. Can local residents afford to shop at your store? If not, you’ll struggle with a few sales. Key things to research:
- Average salaries and wages in the zone
- How many residents have stable, good-paying jobs
- Percentage of homeowners vs renters
Also, see what daily life is like. When do locals typically work? Run errands? Relax at home? Open hours when people are most able to visit and buy or maybe be open late if 9-5 commuters live there.
You can gather all that info before choosing an exact address. Then, locate where your offerings match what potential customers both want and can realistically pay for. The area should supply enough of the right shoppers to support your company.
Evaluating Local Competition
You should see what other stores like yours are around your possible new location. Who and how many competitors are there? What do people like or not about them? That gives clues for your own success.
First, find out the number of similar shops in the zone. Are there a ton selling the same stuff or only a few? Too many competing stores can be hard. But no competition at all might not signal enough customer demand.
Next, figure out each competitor’s market share. Do just 1 or 2 of those other companies get the most sales and shoppers? Or are people spread evenly by buying from several brands? See what share is left for your future store.
You look at the strengths and weaknesses of those rivals, check reviews and chat up local patrons if you can. What do they wish was different or better about the buying experience? What keeps them coming back or sends them away?
Last, see if competitors fail to serve some customer needs. What quick shopping options are missing? What could locals want that no one currently offers? You fill these gaps.
Infrastructure and Utilities
The things behind the scenes matter too – water, power, wifi. Make sure what you need is available where you want to set it up.
You can see if the internet and cell signals are strong in that location. Can people use credit cards easily without lag? Do phones lose calls and data? Stores rely on smooth connections.
You must check on the basics, such as electricity, plumbing, and gas, if you require it. You scope out building safety as well. A few key things to learn:
- Up-to-date with fire codes?
- Accessible entryways?
- Clean, well-kept interior?
- Enough parking spaces?
See if the space meets your store’s needs as-is or will need changes. Also, you should consider future expansion if you grow bigger down the road. Is there room to add a warehouse? Extend the storefront? So, choose an area with modern supports that allow you to focus on your business.
Safety and Security
You want your new store and staff to stay safe from harm or theft and check if the spot you choose has enough protection. You look up how much crime happens locally, such as robberies, vandalism, etc. Also, see where police and fire teams are stationed nearby.
Insurance can cost more in riskier zones, so get quotes on coverage for that exact address. You can ask about:
- Security requirements
- Past claims from other businesses
- Discounts for safety steps
Most important – you talk to potential shoppers and employees. Do local residents avoid certain blocks or spots due to safety worries? You take staff comfort into account as well. If your chosen area seems dicey, look into extra precautions. You could budget for:
- A security guard
- Cameras
- Better locks or lighting
However, choosing a safer zone from the start is easier than adding protections later. So, pick a spot where everyone can work and shop without distress.
Costs and Budget
The price to set up in an area impacts how profitable you’ll be. You see what rent, repairs and taxes cost before picking a spot.
Then, check rental rates per square foot for spaces in that zone. Do some charge way above similar-sized units? Average costs tell you what’s reasonable to pay. Also, learn property tax rates in the district – an extra yearly expense.
You can look into any local business fees, too. Some make stores pay an extra percentage of sales as levies. That eats into your earnings over time.
There can be hidden surprises too once operating – urgent plumbing fixes, safety updates etc. Have extra savings ready to cover those inevitable expenses. Or consider a flexible business loan to access funds quickly for a remodel.
You can get loans like unsecured small business loans in the UK. These allow companies to borrow a set amount without specific collateral. The money can go toward various needs. Owners with good credit scores generally qualify. You repay on a fixed schedule over months or years. It is easy to manage next to income and costs.
You must have a clear budget before signing any lease and know exactly what you can afford for rent, deposits and maintenance needs.
Conclusion
Choosing the right store place takes time. You must study lots of factors – from customer stats to power lines and safety rates. But that effort pays off when you pick an optimal spot. You will have to make informed choices based on consumer patterns, zoning laws, utility access and security concerns in each area.
Don’t leave anything to chance or assumptions. You can lean on hard statistics – and then envision how that spot supports all your entrepreneurial dreams! The ideal location exists through thorough, thoughtful research.