The location, especially in the franchise business, is one of the main keys to success. Moreover, for many it is the most important variable, especially for companies that depend on the recurring visit of their customers.
Therefore, you must apply and look for the best possible place. Remember that the franchisor will give you everything you need in the operative (brand, manuals and equipment) and they can also advise you on the choice of the point of sale. Approach them and ask them for help.
Now, you can learn to choose a good place for your business. At this point, the first thing you should be very clear about is the profile of your potential customers. This information can be obtained directly from the franchisor. What does it consist of? You should know who they are, why they will see you, at what times, how often, their socioeconomic status, etc.
If you already know who your usual buyers will be, use this guide with 10 key questions to make the best business decision.
- Will you be close to your customers? If your business does not depend on the public that travels on the street, proximity is key.
- Is it the right place to serve your customers well in terms of space and design? Ask for help and do not forget that many franchisors do not authorize a contract until they see the chosen location.
- Do you have enough money to pay it and not unnecessarily raise your expenses? Many entrepreneurs make the mistake of spending more than their business model resists. This is an important point, but so is your financial health.
- Is it an easily accessible place: with good public transportation or expedited transport routes? It is not always as the saying goes: If you build it, they will come. Especially in cities with a lot of traffic, it is vital that you decide for a place to facilitate the arrival of customers.
- If your customers will arrive by car: Do you have your own parking or a place to help them park? This is a decisive factor for many clients, especially moms with young children and older adults.
- If it is a place where people walk on foot: Can you get their attention and promote yourself using signs or distributing free samples of your product on public roads? Imagine the place and think about what marketing activities you can do to attract more buyers.
- Are there companies nearby, with which you can establish agreements? This is a good way to secure sales and promote your business. It is ideal that your business is close to hotels, corporate offices, hospitals or centers with high audience attendance.
- Is there competition in the area: who they are, how they operate and how they promote themselves? It is an important factor not only to choose your point of sale, but to define your business plan.
- Can you find skilled workers for your business in a nearby area? Your business is done by your employees. If the workforce you need is very qualified, make sure you are close to where they live.
- Can you stay at the store for several years or is there a risk of having the point of sale removed or closed? Most of the rental agreements for commercial premises do not fall below three years. Still, review this issue with your lawyer.