How to Choose the Right Business Location?
Business success is determined by a number of factors. Business moguls have gone ahead to advise that entrepreneurs need to understand the interrelated concepts under the umbrella of the 4Ps. These include Price, People, Place, and Promotion. Anyone intending to set up a business should have this in mind besides Singapore company registration cost.
In this article, we shall single out one factor, which is the PLACE or LOCATION. Before you choose where to start your business, bear in mind that if the place is not conducive for that business, then it will fail. No one is happy when business failure comes knocking on his or her door.
Here are the tips that you can use when selecting the right place for your business.
Can the place offer your shop the much-needed visibility? The place should be accessible from different points. Still, it is not a must that your business, say a restaurant, be situated right inside the shopping mall but placing it a few yards away will still attract traffic from the shopping mall while saving you the shopping mall rental costs.
A conducive business location should have amenities such as parking lot. The place should also be near a bus stop, a filling station, or even a supermarket. All these enhance visibility as well as creating conveniences for the customers.
The demographics of the population around the location should form the target audience your business is seeking. For you to analyze this population, you can employ the services of location analysis tools that will provide data on lifestyle patterns, traffic, age, income ratios, and professions. All these will help you understand the type of product to sell and how to promote it.
The cost of doing a location analysis can be reduced considerably if you look at your competitors’ location. It will give you an idea on where to place your business and understand how to package your product creatively so that it can stand out from the rest.
The business infrastructure includes network connectivity at the location. Some areas may not have a good network signal, others may not have a fiber-optic connection on which some business may depend. Find this information early enough so that you do not inconvenience yourself and customers.
Get to know the circuit capacities, power outlets, and the consistency of electricity. Persistent power blackouts will mean you get an additional standby power generator to power your business. Your business may be running sensitive machines that require a constant power supply and this should be factored in.
Some places may be very inconveniencing for you. Choose a place that you will be able to access quickly and without the hustles of traffic jams. Some landlords place many restrictions on their tenants and this may rob you of the joy of being your own boss.
Cost is key because it forms part of the investment costs for your business. A business should be able to pay for itself. If the cost is high, you may not realize the return on investment and this may lead irrecoverable losses. Fortunately, Singapore company registration cost is affordable.
Cost does not necessarily mean rent alone. Other costs include security costs, utility costs, building maintenance costs, and many others. Some buildings, depending on the type of business, will require modifications, renovations, redecorations, and general painting. All these costs add to the general cost of running the business and finding out beforehand can assist you in deciding which location is better for your business.