As a franchisee, you must ensure that the location of your business is viable so that you make your franchise reach the zenith of success.
Setting up shop in the right spot is a key to helping your business succeed. All of your entrepreneurial skills will go in vain if your business is not able to create a strong customer base.
Studies reveal that 80% of the businesses that come up fail within 18 months of their journey because of the impracticable location. Apparently, location plays a big role in business expansion.
Location is one such asset that is a long-term investment and determines the success of your store. Scouting for the apt location can keep you on your toes but once you find it you can breathe a sigh of relief.
Choosing a franchise location can be quite difficult; thereby a few things must be taken care of while determining the perfect location. Here are a few steps through which you can find the perfect location for your franchise.
Understanding Target Customer
Before finalising anything, you should understand what your target customer is and to whom your franchise business will cater. It is important to understand the franchise concept of your brand to understand further about your target audience.
For example, if you are starting a bookstore franchise, then it is obvious that you will choose a location where the population of students is high. You must consider some additional facts like where they live and work, where and how they go by their days, and what drives people to your kind of business. To sum up, it is important to align the concept, the target customers and the location to achieve success.
Using Franchisor’s Resources
Franchisors have a huge pool of resources and can help a franchisee if he/she feels that you’re a suitable franchisee for his/her business. Franchisors are able to provide the franchisees a great deal of information about certain locations, legal and real-estate insights that a franchisee might feel difficult to find without the help of a professional. Therefore, using your franchisor’s resources can be of good help to find your franchise location.
Considering the Cost of the Location
While choosing the location of your franchise, it is important to look at the expenses you have to incur to use it for your business. For instance, in some cases, you might require lesser money by leasing a store location that is not very easily accessible. On the other hand, a location which is located in a very high footfall area and is full of pedestrians may cost much higher than the previous one. So, deciding the budget and cost of the location is extremely important. Taking care of the budget is essential while deciding a location for your franchise.
Looking for a Populated Area
It is obvious that an area where there are a lot of people will be an ideal location for any business. But to find the viability of the location, one has to dig deeper considering factors like high footfall and vehicle traffic in order to decide the location of your franchise. There could be so many places where you can find high footfall, for example, malls, high streets, market areas and many more. These are the types of areas where you can find your target consumers and potential consumers as well.
Checking Viability for Future
While investing huge money in building a store, one must also look into the future prospects of the store and the potential it holds in the near future. For instance, if your store location seems to be viable for malls, then it may be possible that someone will plan a mall in that area in the near future. The location is viable for you even now and also in the future as building a mall can help you in attracting more passing-by customers. So, thinking of a future aspect is also essential.