Guidelines in Locating Your Business to Become Successful -- Finding a site for your business is crucial. In the retail business, your sales potential depends mainly on your location. Like a tree, a store draws its nourishment from the area around it.
A storeowner is already half successful if he sets up shop in a good place. Study the population in the trading area. Is the neighborhood starting to be run down? Is the population moving away? Is it new and on the way up?
Assess the purchasing power of the population. Do they own cars? Do they live in nice homes?
Look at the competition. Are the stores doing well? Or barely getting by? How many went out of business in the area last year? How many stores opened? Identify which could be your biggest competitors. If you intend to put up a sporting goods store, for example, you may find it advantageous to locate your store near your competitors’ because the combined appeal of two or more similar stores creates greater customer traffic.
Watch out for factors that might be detrimental to your business, such as smoke, dust, disagreeable odors and noises, proximity to garages, bars and pubhouses, hospitals, etc.
Some Guideline in Locating Your Business
Having in mind the business you havechosen, look at a prospective site taking into account the following:
1. Raw materials – Are sources of raw materials you need for your business accessible to the site?
2. Market – How far are you from your target buyers?
3. Transportation – Consider cost of transporting raw materials and finished goods. Check the availability of public transport for your customers and employees.
4. Labor – Can you employ people living in the vicinity? Do they have the skills you need? Are they within commuting distance?
5. Utilities – Are light and water available? Are these reliable and adequate?
6. Community – How are the community’s rules and regulations in relation to your business? Does the local government encourage certain types of business to set up in the area? Is it physically attractive? progressive? safe?
7. Site – If you need land, is a suitable lot available? For how much? Is it necessary to excavate or put in landfill? Is the land properly titled? If the site is within a building, what do you need in terms of lighting, airconditioning and parking? How long is the lease contract? Are the terms affordable and fair? How much will it take you to renovate the place?
Source: Bureau of Micro, Small and Medium Enterprise Development
Website: www.dti.gov.ph