There are plenty of factors that contribute to business success, but location is one of the most important. Granted, you can’t run a successful business in a good location unless you have something people want. But if you have even a modestly desirable product or service, location will make or break your ability to achieve breakthrough success.
Real estate investors are starting to use location intelligence to find properties because it incorporates real data into the equation. For example, it tells investors where their market goes and what the foot traffic volume is like at specific locations. This is an excellent investment tool because, as everyone knows, location is critical in real estate. If you don’t have a good location, you may not reach your full potential.
It takes a passionate customer to go out of their way
You’ve probably read about people lining up for hours just to get free donuts from a new Krispy Kreme location. It happens just about everywhere a new location springs up. The business offers free donuts and people can’t resist, no matter how long they have to wait. Some people have even waited in line overnight for up to 36 hours. It’s common for people to drive up to three hours for a grand opening.
Donuts are cheap, and it sounds crazy that anyone would drive three hours just to save a few bucks, but Krispy Kreme is known for making some of the best donuts and people want what they want.
Unless you’re running a business with an irresistible, addictive product like Krispy Kreme, people aren’t going to drive for hours just to visit you. They might not even drive ten miles out of their way. And if your parking lot is difficult, they may not even return once they’ve visited you once.
You need to start with a great location
You can’t rely on people wanting your product so bad they’ll be willing to drive anywhere to get it. It’s important to start with a good location and try to make your business as easily accessible as possible. For example, start by opening your business in the right city. Some areas might not be right for your ideal market.
Go even further than that by choosing a location that is easy to get to by car or public transportation. If you can get into a busy downtown area, you’ll have a better chance of staying busy. However, many businesses have found success in rural areas simply because there is a need and no competition.
When you think about location, think about it on a macro and micro level. Would it help your business to be sandwiched between a nail salon and a scuba diving gear business? Or would you do better in a shopping center with a restaurant and a thrift store? These details are important to think about because being around complementary businesses can bring you (and them) more sales. For example, ice cream shops and restaurants usually do well located near movie theaters because people often want to have a real meal or go for dessert after a movie. That’s why some movie theaters have added Dippin’ Dots to their menu – it sells.
Location also includes your parking lot layout
When considering location, think about the actual physical building and all of its components, including the parking lot. The building might be nice, but a bad parking lot can deter customers.
If you rent an existing building, you can’t control the layout of the parking lot or any other elements that customers are required to navigate to get to your business. This can be a major problem if the existing layout is difficult or frustrating. You can actually lose customers if your business is located in the middle of a parking lot full of potholes, tight spaces, or weird turns. It happens to drive-thru businesses often. They buy an existing location and don’t even realize the drive-thru pathways are problematic.
This begs the question – should you buy a commercial property just to get your ideal location? For many people, the answer is probably yes. If you have a solid, proven business and can afford to buy commercial property, it is in your best interest to own the property you run your business out of. This will give you full control over just about everything you need to maximize your success, which makes it worth all the associated costs.
Great locations support amazing results
Location can make or break your business. Don’t open for business until you’re certain you’ve landed in the ideal place to reach your market. A great location will naturally support your success.
