The phrase “location, location, location” is one of the most important sayings in business. Location can help determine how successful a business may become, as customers need to be aware of a business before they can patronize it.
The physical location of a business may determine whether some businesses will succeed or fail. Plan a business in a busy area, with lots of potential customers walking by every day, and the business may do better. The history of the building is another factor. For example, choosing to open a restaurant in a space where several other restaurants have failed can negatively affect your business. The customer base already has negative associations with that location, and may be less likely to give your business a try.
It is important to carefully choose the location of your business for other reasons, as well. Find a community where you will enjoy spending most of your time, especially during the first few years as you build your business. Find a community that fits who you are, and what your business offers. If relocating to a new area to start a business, consider the available job market. It will be easy to find employees in a college town, or an area with high unemployment rates. However, these areas may not be best for business, depending on what you are offering. A high-end retail store may not do as well if the local population is facing financial problems. On the other hand, a used bookstore may do very well.
Choosing the types and positions of marketing that a business will use is another important aspect of location. Positioning advertisements where the target customers will see them is essential to building a successful business. This might mean a billboard overlooking a busy highway, or a series of radio and TV spots. Internet ads can build the business of an online-based company. Advertisements are a businesses way of reaching out to potential customers. These advertisements need to be in a location that people can easily see.
The importance of location cannot be overlooked when planning to start a new business. Paying extra for a great location may be harder to do at first, but the extra business will make up for the higher payments. The same goes for the more visible, and more costly, advertisement spaces. The success of a business is largely determined by its accessibility to the public. The more people who are aware of your business, the better income potential it will have.