When starting a business, one of the important things that has to be considered is the location.
After all, having the right location can make or break your business. In most cases, having the right location is as important as having the right product.
Entrepreneur.com.ph listed down four things that you need to know about the role that location plays in your business. Is location as important as it should be?
• Accessibility to your target market
In a very competitive environment, being near your market can be critical, making your business visible to the people, to the consumers who matter to you. Being on or near vehicular or foot traffic can be an asset for your business. Being near important landmarks is also helpful—people will have a very well known place marker from where they could reach your store.
• For service businesses, location is perhaps less critical
In such cases, the visibility of your office or store is probably not so important as for businesses that sell products. However, you will still have to find ways to communicate with your market; sometimes, this may mean spending for advertising, in order to let people know about your business. The location of service establishments also affects staff efficiency in terms of travel time, of staff making client calls.
• On-site promotional activity
If you are in a very good spot that is highly visible and central to your market, you can take further advantage of your location by having on-site promotional activities. Design your activities such that they would attract crowds to your place of business. Some retailers use their location as well as their building architecture itself to mount unique and attention-grabbing promotions, able to attract the attention not only of customers but of the mass media as well. On-site activities can help you generate publicity with very little PR (public relations) costs.
• Faster response time
Having a good location—being central in relation to your market—will allow you to respond to your customers faster than competitors who are more remotely located. Deliberately make your excellent location a differentiating factor for your brand.
This article was originally published in the March 2010 issue of Entrepreneur Philippines.