The location of your business is one most important decisions you can ever make. You don’t want to set up your business on the wrong target.
Discover, learn, and understand your local market before you set up your business. This is about finding out the people who will be using your services and understanding your competition and the market size.
Get adequate knowledge about your local market so you can know your prospective client base and tailor your services for their specific needs.
Before you launch your business, keep in mind that establishing your business in the right location and approaching the market accordingly are your first steps towards running a successful business.
Here are the key factors to consider when picking a location for your business:
Knowing your market will help you discover your competitors, their packages, and pricing. You’ll also learn about your customer target and what they’re looking for.
Guiding questions to help you understand your local market;
Search and make an inventory of the competitors in your local areas.
A list of businesses offering similar businesses will give you an idea of the market pool you’re about to join so you can organize your business resources.
Identify the types of services your competitors provide. You need an idea of the services clients are looking for, and identify the gaps to find out how you can best position yourself in the market.
Find out whether existing competitors are solopreneurs or team-based.
Not all business models work in all environments. A hint of performing business models can give you an idea of what to implement for your business.
What’s the client accessibility to clients in the market? Are they next to the highway? Do they have any parking spaces?
A glimpse into business accessibility can help you plan on the best means to position your business for maximum client flow.
Observe and identify the clients your competitors serve. Do they fall within your target? Learning about prospective clients gives you useful data to strategize on how to best reach out to them.
Purpose to rightly package and price your services. Are you offering standalone or bundle service? What packages are competitors offering in the market? How can you better the offers?
What is the current pricing for the available packages? Are their any offers and discounts for returning customers?
Set up your business establishment near age-appropriate clients. Is your client target older, middle, younger or all-age people?
Ensure your business is within an age-appropriate target.
For example, if you’re a masseuse with a specialty in geriatric massage, your audience can be near retirement communities, they need such services.
Are the people in your prospective location’s surroundings living in their own homes or in rented apartments?
People in their own homes or in high-end apartments have a higher disposable income.
If you intend to set up an executive business, then such surroundings can make an ideal location for your business.
Homes with double-income earners may have more monetary resources compared to single-income earners and they, therefore, have more income to spend.
Businesses in locations with double income earners can command higher charges for their services.
Consider the traffic through your prospective location.
Set up your business where clients can easily drive in and park without obstruction.
Install your on-location signage for maximum visibility.
Your business can attract more clients if you locate it near related businesses like high traffic areas and office establishments.
By default, businesses in high traffic and office establishments get more clients if they provide services relevant to those office persons.