By Brooke Chaplan
When it comes to business, one of the most important success factors is the physical location of the offices or storefront. A store located in an area frequented by individuals with a need for the company’s products will be likely to succeed. For businesses run out of an office, geographic location both within the country, and the city are critical. For businesses considering relocating their business, this article will provide some factors to consider before the move.
Do Market Research
Any business looking to relocate should conduct careful market research before setting out. Retail businesses should ensure that enough customers will frequent the area, and that these customers will have the ability to pay. Many businesses make the mistake of believing that there is adequate demand for products in any geographic area. This is completely untrue and can result in total business failure when you’re not careful. For businesses run out of an office, it is important to consider the type of employees the location can attract. Offices located in areas where skilled workers are widely available will have an easier time finding employees from the local community.
Consider Prime Real Estate
There are a wide range of properties available in the commercial real estate market. Some are affordable storefronts, while others might cost tens of thousands per month. While many shy away from these more expensive real estate properties, the reality is that cost should only be a secondary consideration. A retail store can reasonably expect to earn 25-100 times the rent value of the property each month in revenues. According to ReaLocation, even a small increase can more than justify the monthly cost of the more expensive storefront. Of course, it can take time to establish local loyal customers, so businesses should ensure that they have enough savings to cover the rent for at least a year.
Mitigate Renovation Costs
Most commercial real estate will require extensive renovation to match the store to a company’s brand, customer needs, and employee expectations. While shopping in the real estate market, businesses should look for properties that will enable them to salvage existing assets instead of buying new equipment. This can save great amounts of money as businesses that do this will not need to spend as much upfront for the move.
By doing these activities, businesses considering a move can make the transition more profitably and with better results. Talk to a marketing professional or a Toronto real estate agent to find the best location for your business. Once settled in at a new location, businesses that do everything right from the start will have immense opportunity to establish themselves as a local market leader.
Brooke Chaplan is a University of New Mexico graduate and has been freelancing writing for over a year. She loves to hike, bike and spend time in the garden. Get in touch via Twitter @BrookeChaplan.