Editor's Note: Take a look at our featured best practice, Five Stages of Business Growth (25-slide PowerPoint presentation). This presentation introduces a framework for entrepreneurs to use when building and navigating their business from a nascent, startup state to an enterprise with a global footprint. This framework, called the 5 Stages of Business Growth, is based on the fact that all businesses experience common [read more]
Tips in Choosing the Location of Your Business Franchise
* * * *
Buying a franchise has numerous benefits, especially if you choose one that is well-established and well-known. You’ll be happy to know there are a variety of affordable business franchises available, such as dog training or fast-food chains. In addition, you will have the resources you need and the support of your franchisor. However, there are still various things to work on as a franchisee, including selecting your location. Choosing the right site is vital because it could make or break your business. Here are things to consider when selecting the right place for your franchise.
Know the Nature of the Business and Your Target Market
Before looking for a location, get a thorough understanding of the business you wish to franchise and determine your potential customers. For example, if the business is a retail store selling children’s clothing, your target market will be families with little kids. Therefore, choosing a location where most people are seniors or without children would not make sense.
Consider the Traffic in Your Location
The higher the population, the better because there is more chance of turning these people into clients. However, don’t forget the first item too. Your target audience should be present in the population. If there are several people, but only a tiny percentage of them fall under your potential market, you may not benefit from it. On the other hand, if a considerable portion of the population belongs to your target customers, ensure that the specific location you choose gets as much foot traffic as possible for better exposure.
Consider the Rates
Finding low cost franchise opportunities will help you start a business that is easier in the pocket. However, it’s not just the upfront fee and the monthly royalty fee to the franchise that you need to consider. There’s also the lease that you will pay for the space where you will operate. So take the lease prices into consideration when making a decision. Again, you may ask the help of your franchisor as they may know of excellent spots with reasonable rates. Plus, they can help you negotiate, especially since they have probably grown their network and have a strong relationship with real estate agents.
Ensure Accessibility
Although customers may be interested in your business, if they have difficulties going to your store or finding a place to park their vehicles, they may not go through the trouble and instead look for a more accessible alternative. Therefore, be sure that it will be convenient for your clients to get to the location. There should also be ample parking space, as this is one thing that can affect their decision in checking your business. For example, customers may not visit your place if the location is far from the main road and there are no other businesses but yours.
Determine Plans around the Area
The location may not be that busy at present, but if there are concrete development plans around the area you choose, it may still be a good choice. For instance, a mall in construction will attract more people once built, which will benefit your business.
Purchasing a business franchise still requires hard work and making the right decisions, including selecting the best location. Consider the things listed above when choosing the site of your franchise to ensure its success.
Do You Want to Implement Business Best Practices?
You can download in-depth presentations on Small Business and 100s of management topics from the FlevyPro Library. FlevyPro is trusted and utilized by 1000s of management consultants and corporate executives.
For even more best practices available on Flevy, have a look at our top 100 lists:
- Top 100 in Strategy & Transformation
- Top 100 in Digital Transformation
- Top 100 in Operational Excellence
- Top 100 in Organization & Change
- Top 100 Management Consulting Frameworks
These best practices are of the same as those leveraged by top-tier management consulting firms, like McKinsey, BCG, Bain, and Accenture. Improve the growth and efficiency of your organization by utilizing these best practice frameworks, templates, and tools. Most were developed by seasoned executives and consultants with over 20+ years of experience.
Readers of This Article Are Interested in These Resources
|
24-page Word document
|
|
50-slide PowerPoint presentation
| |||
About Shane Avron
Shane Avron is a freelance writer, specializing in business, general management, enterprise software, and digital technologies. In addition to Flevy, Shane's articles have appeared in Huffington Post, Forbes Magazine, among other business journals.Top 10 Recommended Documents on Small Business
» View more resources Small Business here.
» View the Top 100 Best Practices on Flevy.