It is the desire of every business owner that the moment they set up their business customers would come trooping in effortlessly. Nevertheless, this is not the case, some businesses have to go through several months without any significant number of customers which makes the location of a business crucial. The location of a business has the potential to either make or mar a business.
Thus, it is important that business owners give the needed attention there is in choosing their business premises. The all size fits all mentality can not be used in choosing a business location because each business has its unique tribe of customers although, there may be some overlap among businesses.
Consciously or unconsciously some entrepreneurs do not seem to give the needed attention there is to find the best location for their businesses. This perhaps may be due to the financial constraints most entrepreneurs face at the beginning of their business or just out of forgetfulness. This article therefore seeks to help and make your work easy in choosing the best and strategic location for your business in Ghana or in Africa.
There are a series of things to consider when selecting the location for your business and this article outlines some tips for you in the Ghanaian or African context.
1. Potential Customer Concentration: One of the first things to consider when looking for a business location is the presence of potential customers. When your business location has a sizeable presence of potential customers it gets you going from the start until you build your loyal clientele base. In this regard of potential customer concentration, you would have to look at the demographics of the neighbourhood and see whether is it compatible with the demands of your business. For example, what are the most dominant age groups in the area, their income, and employment status among other characteristics. Does your business require the concentration of schools, houses or industries? Looking at it this way can help you make the best choice.
2. Traffic and Accessibility: Another factor to consider in choosing the best and strategic location for your business is whether it is easily accessible, either by car or foot. Is the location having a lot of traffic flow? Does the place have a car park or a nearby garage? Locating your business in a very accessible place can help bring you, customers easily and it makes it easier for people to find you should they be recommended to your business.
3. Understand The Existing Competition: The presence of existing customers can be either be a blessing or a curse. For example, if your competition is oversubscribed and the location has surplus customers your business can benefit from this. However, if you trade in the same products the competition can be fierce and it can have negative effects on your business. Whatever the case may be, just study and understand the existing competition to see whether it would be a blessing or a curse to your business. One telltale sign of a negative effect of a competition is if other similar businesses have folded up in the same premises.
4. The Building and its Affordability: Another critical thing to consider in choosing a location for your business is the affordability of either the building or the location itself. Sometimes you may come across a location or a building that seems perfect, but you have to weigh the costs and benefits and see whether the building is not too expensive for your estimated revenue. If you find yourself in a situation where the building is perfect, but expensive I would advise that you scout the area and find a less expensive strategic spot.
5. Locational Permit: If your are lucky you would not require a location permit to set up your business, but that is not always the case. For some businesses to be able to operate in some locations they would need to obtain a legal permit for their operation. And if this is the case of your business, it is expedient that you obtain the permit first before starting anything. Because if you don’t, you would end up regretting that you have not done that, and this could result in loss of some capital or other losses.
6. Proximity to other Businesses and Services: The proximity of your business location to other businesses can be of advantageous. For example, situating your boutique around a bank can bring you customers effortlessly. Which is why locating a business in a shopping mall or commercial centre can be of great advantage. You get to benefit from the patronage of customers of other businesses.
7. Remote location: If your business has a lot of flexibility one possibility for your business is to have a remote location, otherwise known as an online shop. With so much advancement in the supply chain technology, most businesses do not need to have a brick and block location for their operation, but rather can operate remotely from an online platform. Either personally owned by the business or other B2B platforms like Tonaton, Jumia, Amazon and Alibaba among others. On these platforms you have the opportunity to serve a global customer base.
Hope you found this article helpful? Kindly leave your thoughts and comments below. Thank you!