5 Tips Before Finalizing a Location for your Franchise Business
Selecting the right location for your franchise business can be a hard decision to make but on the other hand, if you choose the right spot, it can be a key to success fr your franchise business. All of your entrepreneurial skills will go in vain if your business is not able to create a strong customer base.
According to a research, 80% of businesses fail within 18 months of their venture because of the impracticable location. Apparently, location plays a big role in business expansion. Location is one such asset that is a long-term investment and determines the success of your franchise business. Scouting for the apt location can keep you on your toes but once you find it you can breathe a sigh of relief.
Being such a tricky task, a few things must be taken care of while determining the perfect location for your franchise business. Here we have discussed a few steps through which you can find the perfect location for your franchise.
1. Know Where is your Audience:
Before finalizing on a location, you should understand what your target customer is, where do they reside, and to whom your franchise will cater. It is important to understand the franchise concept of your brand to understand further about your target audience.
For example, if you are starting a tiffin service franchise, then it is obvious that you will choose a location somewhere near a corporate sector, a student hostel, etc. You must consider some additional facts like where they live and work, where and how they go by their days, and what drives people to your kind of business. At last, it is important to align the concept, the target customers, and the location to achieve success in your franchise business venture.
2. Benefits of Franchisor’s Resources:
Franchisors have a huge pool of resources and can help a franchisee if the franchisor feels that you’re a suitable franchisee for their franchisee. They are able to provide the franchisees a great deal of support about selecting certain locations, legal and real-estate insights that a franchisee might feel difficult to find without the help from the franchisor. Therefore, using your franchisor’s resources can be an excellent option to find a location.
3. Cost of the Location:
While selecting the location of your franchise business, it is important to look at the expenses you have to incur. For instance, in some cases, you might require lesser money by leasing a store location that is not very easily accessible. On the other hand, a location which is located in a very high footfall area and is full of pedestrians may cost much higher than the previous one. So, deciding the budget and cost of the location is extremely important. Taking care of the budget is essential while deciding a location for your franchise.
4. Areas with a Higher Number of Residence:
A populated area will be an ideal location for any business. But to find the viability of the location, one needs to do a thorough research considering factors like high footfall and vehicle traffic to choose the location for your business. There could be so many places where you can find high footfall, for instance, shopping centers, high streets, market area and so on. These are the sorts of areas where you can discover your target consumers and potential consumers as well.
5. Checking Viability for Future:
While investing a tremendous amount of money in building a store, one must also look into the future possibilities of the store and the potential it holds in the near future. For instance, if your outlet location seems to be viable for malls, then it may be possible that someone will plan a mall in that area in the near future. The location is viable for you even now and also in the future as building a mall can help you in attracting new and more customers. So, thinking of a future aspect is also essential for your franchise business.