Choosing a retail store is a daunting task for all entrepreneurs. If you pick the right one, 50% of the store’s success is confirmed. But by picking up the wrong one, you will undoubtedly fail.
Product quality, management, customer service, delivery time etc., play their parts in retail store start-up. Yet the fact that location is the paramount aspect in your business. The wrong location can single-handedly ruin your retail business.
So, as a retailer, you should choose your location according to your target market. Take a store where your customers are and grab better chances of finding success. Analyze other factors like cost, space available, transport service, etc., and then decide.
There are some questions you should ask yourself when you are examining different properties and locations. These questions will help you in making your decision a lot easier.
5 Questions To Ask While Evaluating Locations
Is it close to your target audience?
It is essential to select a location where the most number of your target market works or live. Let’s say, if you are selling cosmetic products in an industrial manufacturing zone, will it make sense? Maybe a few girls come there some time, but your business will not get a boost.
All you need to do is research for your target consumer then search for locations.
Is the space accessible
You will need a space with pedestrian and car access and a vast parking lot upfront because other business-related people will also visit your store other than customers.
Since you are opening a retail store, you’ll need inventory from manufacturers and other retailers. And you will get this in large vans and trucks. That is why there should be enough space for these vehicles to park and workers to offload the items.
Will you be able to shift right away
You will not believe it, but most entrepreneurs indeed forget to check if they can move in right away or not. They usually forget that they need to renovate and moderate retail stores according to their business requirements. It may be adding or moving some shelves, breaking a wall, replacing fixtures, repainting, reinstalling flooring, and another refinement, which will usually take time. So to start your store at the planned time, it is essential to ask for a shifting date and analyze renovation charges before opting for a retail store. Moreover, if you are renting, you can negotiate with your landlord for the amount you spend on major repairs.
How much local competition will you face?
Sometimes competition assists similar businesses to prosper. And sometimes it can also. It all depends upon what type of business you are running. For instance, if you are running a clothing store, your store must be in malls or some reputed market area. Where you will find other apparel, jewellery and accessories shops also. In this way, if someone is looking for only one thing, it can be either clothes or jewellery. There are 99 % chances that customers will visit your shop also. In other cases, running a grocery store will be a massive competition in engaging customers because other shop owners can be old players and already have a client base. It will be daunting for your business to survive. That is why we advise you first to check your business type, accordingly check the locality and then opt for a retail store.
What are the terms and conditions of the contract?
Whether buying a retail store or taking it on rent, make sure that you pay close attention to the lease conditions.
Especially if you are renting, always check if you are going for a long time or renew it every year. It is essential to know because a long term lease means you will pay a fixed rent amount for a long time, and rent rising will not affect it anytime. A short-term lease is more flexible, but the landowner can change the rent rate anytime if he sees your business growth.
Conclusion
Opening a retail store is difficult, but managing it is more complicated. For that, you should opt for retail store management software from a reputed company. Xecute plus offers you the best ERP solution to manage your retail store easily. We have an innovative approach that enhances efficiency and reduces time and cost with advanced solutions and flexible consulting services.
