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The Flevy Blog covers Business Strategies, Business Theories, & Business Stories.
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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]
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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.
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.
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.
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.
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.
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.
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