Must-know tips for deciding your store location
1. How to choose the store location
You should not choose a business or property simply because you can easily go there from your house or because the area is frequented by people. You should search the area yourself by using knowledge from the headquarter of franchise.
1-1. Narrow down the business area
- The very first step in choosing the area is to understand the people who live there. You should make it clear what kind of people would be your clients. Also make sure that the area has enough number of these clients to develop a business. Below are 4 points to check when you consider the location of your store.
- Age groups and social statuses of people who live in the area
- Life pattern of people who live in the area
- Prospect of becoming a potential client
- Whether there is an enough number of potential clients to do your business in the area.
Once you decide on your store, you cannot change the location easily. Therefore, you need to make the decision carefully. Even if you are thinking about going back to your hometown and starting your business there, you need to consider with same perspectives.
1-2. Property Search
Next step is to search for a property. You should consider a business area as the “surface”, store location as the “line” and the property as the “point”.
For example, when you feel that you don’t want to go to the store because of its location even if the store is one of your favorite chain stores, the reason might be less enough of customer flow lines. While, when you feel that “the store is very comfortable because its 2nd floor is very quiet”, it might be because the chemistry between its service and the location is right. In addition, you need to search for clients based on the time. You need to check the streams of people at different times in the area, or if the property has a good chemistry with its services. Also there are innumerable points to consider like the situation of your rival stores or future town-planning etc.
These decisions are quite difficult for business beginners to make. Because of that, most of headquarters support you with their knowledge. Moreover, sometimes the headquarters rents property which they already had for you or you can take over a store that already exists. It is believed that 60% to 80% of a business success is related to its localization.
1-3. Interior and Exterior
Generally, there are 2 types of property. The difference is caused by the interior, and exterior furnishings, as well as the cost of equipment.
Type 1: Furnished Shop
Furnished shop is a property that has all of furniture and equipment. If the former tenant is the same type as your business, you can use them as they are. In this case, you can save money because you don’t have to buy all the equipment you need. Also, you can minimize the construction period. There are a lot of benefits, but there is a possibility of deterioration of the equipment. Also you cannot change the layout. This is one of the big demerits of a furnished shop.
Type 2: Skeleton Shop
Skeleton shop is a property with no furniture or equipment. While you can decide all of interior and exterior, its cost would be much higher compare to furnished shop.
Decision of location of your store is a very important to start your business. You should make a careful choice but at the same time you should be excited by your ideal future store.