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. Read on...
Studies reveal that 80% of the businesses that come up fail within 18 months of their journey because of the impracticable location. The data reveals how important location is for any business. Talking about franchising in general, a franchisor gives away his/her self-made empire to someone else; so franchisors have to take care of what location the potential franchisees possess so that franchisor doesn’t face downfall because of the franchise’s location. Apparently, location plays a big role in a franchise expansion for both franchisors and franchisee.
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. Here are some points to take into consideration while choosing your franchise location.
Research different locations
Have you done your research before finalizing the location of business? Research is very crucial before you finally set-up the business in any location. Figuring out the needs, demands and locality of your target customers is crucial to finalize the location. The location should be feasible for your customers, not just for you. What’s the point in setting up a store which is far away from the location of your customers?
In-depth research about different locations that cater to your customers is important. It will help you in getting the demographics and economic characteristics of the areas you’re interested in.
Research about your competitors
Researching about the competitors is quite important once you finalize your location. Look around the other stores of your domain in that area, how many other stores are there, what they are offering the customers and how you are going to be different from them.
A location which is clutter-free and has minimum stores from your domain is the most preferable location to set up the business.
Digging deep into the future of the location
Once you set up your business in an area, obviously you envision expanding the business in the next few years. The future aspects of your location become important in the sense that it is going to shape your business’s future too.
Keeping contact with the local council helps to get insights into future development, zoning, rates and other future events that could affect the business in near future.
Proximity to other business and services
Firstly, see if nearby businesses and services can benefit your business. This can happen by two means, either you could be their customers or their customers are your potential customers. For example if you’re to open a stationary business, then opening it near a school will be lucrative for your business as students are your potential customers.
Secondly, for the benefit of your employees and customers, there should be other facilities near the company. For example, having a food lounge or healthcare facilities nearby the company is beneficial.
If the location of your business stands fit on the above parameters, then your location is very much viable in order to have a rewarding business.