Many would-be business owners often overlook the importance of the location. The place, in fact, is one of the most important components and is one of the four P’s in marketing, next to product, price, and promotion.
As an entrepreneur, you should know that the location of your business would make or break your trade. Unless your shop is set online or you drop-ship from a third party, you have to find the right location for your shop.
Local Ordinances and Policies
Always make sure that your business will always conform to city ordinances and zoning policies. Educate yourself—read up some books or go to business consulting agencies so you know whether you will be breaking any policy. For example, there are laws in certain places that prohibit adult entertainment establishments from operating near schools.
If you are planning to set up an internet café near a school, remember that the law prohibits computer rental shops from allowing minors to enter during school hours and school days.
It’s important to study the demographics of the potential location of the business—identify who your customers are and what they need. To determine this, PhilippinesRegistration.com recommends you hire business-consulting agencies to help and advise you with reports, surveys, and feasibility studies. Demographic data will enable you to determine how much consumers in a particular place are willing to spend on your products. This will help you determine the right spot to set up shop.
Proximity to Competitors and Suppliers
It may seem ironic, but the best place to set up your business is somewhere as close to your biggest competitor as possible. Remember that shoppers have a habit of walking into several shops that sell the same products before buying what they need. If you are confident enough that the product will outsell your competitors, then being near the competition can be a boon to your business.
You might also want to be near your suppliers, especially if your business primarily counts on raw materials.
When looking for a good location for your business, remember that you cannot simply look for a commercial area flooded with people. Set up near a competitor, study the demographics, know the local ordinances and zoning policies, and you’ll be off to a great start.