Business location

Discussion in 'Growing and Managing a Business' started by Corzhens, Jul 1, 2015.

  1. Corzhens

    Corzhens
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    Based on my observation, particularly in the business areas, the location is the most important element of the business. Opening a business in a remote area would depend on the nature of the business. But for commercial retail particularly food outlets, the best bet would be in a crowded and highly populated area.
     
  2. Elysium

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    Location is everything unless you're strictly an online business. For the most part, a crowded area is the best for any kind of business, even if they do not sell directly to the consumer.
     
  3. tsubibo

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    Yeah, location would always be the primary concern of every business. Why would rent skyrocket on places that are crowded and are generally regarded as business locations. And sometimes rent is the most expensive single overhead of a business.
     
  4. Corzhens

    Corzhens
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    I just want to add this food for thought. There was this classy and big restaurant near our office that folded up after a year of operation. The problem was the burdenous rental of 300,000 pesos every month. It is easy to compute that the business should be earning a NET profit of 10,000 per day in order to fulfill the rental obligations. Well, that 10,000 pesos is around $250.... a day.
     
  5. m0n2k

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    Location is important if you want your business to stand out. Being in a populated area is good if you own a restaurant , but you don't want to be crowded in by other restaurants. If you look at CVS and stores like that they all have a space to themselves in shopping centers so you can see them. Even Chipotle has there own space in shopping centers most of the time. Having a prime location is part of a good business strategy.
     
  6. Corzhens

    Corzhens
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    One friend of mine put up a kiosk inside the most popular mall here. Located near the stairs, the rent for that kiosk was 5,000 pesos or roughly $120 a month. The sailing was good at first. By the way, before she set out with that business, she took a survey of how many people pass that particular area before renting the said kiosk. After 6 months, it was noticeable that people were not dwindling in number but her sales was going down. Her product is sweet pili, a native nut here.

    That business lasted more than a year on a struggle until my friend surrendered. She said that a crowd is not a guarantee that your business would sell. Yes, it always depends on what you are selling.
     
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  7. tsubibo

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    Maybe that is because the people passing through is not looking for that product. Location is still key. Had she surveyed people into where they are going or what they are going to buy when they were passing through that spot then she would have had a better insight on what to sell.
     
  8. m0n2k

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    What your selling does have a lot to do with the success of your business. Location is still important, but if what your selling isn't in demand it won't matter. So it's mostly supply and demand first off, then you have to find a way to get the most sales. Doing a survey of what most people would buy at that particular mall could have helped your friend make adjustments on what products to sell. If people weren't dwindling in number selling a different product could have saved her business.
     
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  9. Sotaru

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    Its also good to do location-specific research for the most traffic in and out.

    For example an area nearby to me is relatively new, its a mall that was built about 8 years ago, yet it has the 2nd most amount of customers for its businesses in our whole state in that timeframe.
     
  10. Corzhens

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    My friend surmised that the trend killed her business. What she meant by killed is the dwindling sales getting in direct conflict with the projections. A business should always be improving in sales and it's so bad that her business was on a downslide. As per her evaluation, her sweet pili nuts were not selling that good anymore due to some other food stuff that became more popular than her product.
     

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