Starting A Business – Location Is Critical (1/5)

There’s nothing that upsets me more when walking up the high street in my neighbourhood than seeing businesses that have gone to the wall.

The thought of that hard-saved, borrowed or even windfall money being lost because someone didn’t do their research thoroughly before opening, saddens me greatly.

There are basic questions which every journalist seeks to answer when writing an article – it gives the fullest picture of events. These questions are where, when, what, why, who and how. For anyone ready to open their own business, the questions should be the same.

Where – this is probably the most important question to answer. Are you opening in the right location? Have you researched? Have you loitered around the location at all times of day – opening hours and outside? Do the locals come during business hours? Or is there a thriving after-hours shopping culture? Do you have competition too close – and competition which is ingrained into the local area?

I’ve seen many Indian restaurants open near a particularly successful one in my neighbourhood. They think they will simply get the overflow from the popular one. They haven’t and they have gone broke. Their research has been scant at best.

Other shops have gone broke because they think they can make more margin than is possible in a very price-savvy neighbourhood.

Shops which assume they can run during regular business hours have missed the best business opportunities and they also have gone to the wall.

The best shops have opened knowing their location, their clientele, the best hours.

Not every location will give the same opportunities to your business. Even if you are tried and tested in other locations, you need to make sure a new location will offer the same opportunities.

Are you going to be the third trendy baby shop in the 250m long shopping strip?

Are you opening a florist too close to a market?

Even 100m can make a lot of difference if you are not located near any other businesses that people walk past.

If you sell something that is heavy and will need people to be able to park, make sure you are located appropriately.

Read part two: When is the right time to open your business?