As we move through the lanes of our cities every day, we come across numerous shops. Most of these shops help the owners provide for their families, or make their lives better. However, even the simple difference between selecting the wrong and the right location could make the difference in the success or failure of your business. Here are some tips to help you choose the best location.
What are you selling?
A very important step is to make sure your shop location aligns properly with the type of products you are selling.
Convenience stores provide lower priced products with ease of access for a wide range of consumers, helping them make quick purchase decisions. Thus, these stores must be prominent on sides of the road and not be located inside malls.
Specialty goods such as clothing, accessories or decoration items are unique. They can be located in malls or near other shopping stores, since people don’t usually mind travelling all the way to purchase these products.
Shopping stores include higher-priced items bought infrequently by customers. It is suggested to place these shops near like-stores selling similar products, because customers often want to compare prices before making their purchase. Luxurious car stores in Gulshan as well as fashionable boutiques and furniture stores on the streets of Mirpur, Gulshan and Banani are examples of shopping stores.
The two important considerations for demographics are to know who your customers are and in which locations such people frequent. It is crucial to understand that traffic doesn’t necessarily translate to patronage. An adequate percentage of the population visiting that area must match your target consumer profiles and have a stable economic base for supporting your business.
When choosing the location, accessibility of customers, employees and suppliers must be ensured. Some things to consider are the availability of public transportation and adequate parking facilities in that area, the number of people walking or driving past your location and the ease of couriers and delivery trucks by suppliers getting in and out.
To ensure proper visibility, look at the location from a customer’s viewpoint. Using vividly colored big signboards, fancy fonts or an eye-catching name would surely make your shop stand out. Additionally, locating shops selling clothing or home-décor items in places where they can be seen easily helps you get the admiration of every passer-by as they look at your exquisite collections. In many cases, the better the visibility of your shop, the lesser the advertising needed.
Competition & Neighbors
Before choosing, make sure you analyze if other businesses in the prospective location affect your business. A high-end fashion boutique may not do well next to a discount variety store. However, when that same boutique has beauty salons, posh restaurants or other similar boutiques nearby, then that may work like magic for your business.
If you plan to work in your shop or visit frequently, the distance from the shop to your home must be considered. You must also check for zoning restrictions of that area and restrictions placed by landlords.
Rent, Utilities and Other Costs
Although rent covers a major portion of your ongoing facilities expenses, verify if extras such as utilities are included or not. Security deposits, an adequate electrical supply and climate control must also be taken into account.
Once you have decided where to place your shop, you can choose the name to register, using the website for the Registrar of Joint Stock Companies and Firms (RJSC). Afterwards, pay a stamp duty at a designated bank and submit your registration at the RJSC, with all necessary documents. Obtain a tax identification number, create a company seal, get a trade license and finally, register for VAT.
Waiting for the perfect store location is better than settling for whatever comes your way. Remember to take all the time you need, research the area and be patient!