By now, almost every business owner has heard the phrase “location, location, location.” The right location can transform your small business into a superstar franchise. The wrong location can put you out of business.
Having a business that is profitable enough to justify opening a new location is exciting, and taking time to research the perfect site will help ensure that the second site is as successful as your first. Here’s what you should look for when opening a new location for your business.
1. Surround Your Business with Success
Don’t be afraid to stand on the shoulders of giants. For example, if you own a restaurant and you find there’s a storefront available at a strip mall that’s anchored by a Walmart or a Target, you shouldn’t hesitate to seize that opportunity. Your business will get plenty of exposure from people who are visiting the larger retail chain. It’s really free advertising.
2. Don’t be Afraid of Competition
Just because there is competition in the area does not mean you should look elsewhere. Opening a new location near a competitor gives consumers an opportunity to do some easy comparative shopping. It also offers them an alternative if they’re dissatisfied with the competition, or just want a change of pace.
3. Think of the Long Term Costs
Don’t just look at what opening a new location costs now; think about how much it is likely to cost in the future.
If you’re renting, think about how much the rent goes up in the area every year. This is especially important if you are in an up-and-coming area that is expected to boom once it’s fully developed. If you’re buying, how much are insurance and taxes going to cost you long-term? Answering these questions may require a little research, but knowing the answers before you sign your lease will align your new location with success.
Opening a new location for your small business is both exciting and stressful. But, proper research and capital will ensure you’re ready to meet a overcome challenges as you take advantage of new opportunities.Back To Blog