Finding the PERFECT location for your business | Business 101

Summary

In this video, Grant provides valuable insights on choosing the ideal location for a new business. He walks through key considerations such as demographics, accessibility, traffic patterns, and local competition, offering real-world examples from shopping centers. Grant emphasizes the importance of understanding changing demographics, the value of professional agents, and evaluating factors like daytime population and consumer spending. He also explains how visibility, red-light locations, and traffic flow can significantly impact business success. Overall, this video equips viewers with essential tips for selecting the perfect business location.

Takeaways

• 😀 Do thorough research on the demographics of the specific area you're considering for your business location. Don't rely solely on city-wide demographics.
• 😀 🗺️ Visit the area in person to understand its dynamics. Drive around and analyze how businesses in the area are performing.
• 😀 🏙️ City and neighborhood demographics can vary significantly even within short distances. Reassess every mile when considering a location.
• 😀 📊 Just because there’s a similar business in the area doesn’t mean your business will succeed in the same spot. Conduct your own research.
• 😀 🧐 Always use a real estate agent when looking for a location. They don't cost you extra but provide valuable expertise and support.
• 😀 📉 Demographics should include average household income. Aim for areas with high disposable income to ensure the area can support your business.
• 😀 🚶‍♂️ Consider the daytime population of an area. A high number of people working in the area is a sign of potential business traffic.
• 😀 💸 Check the monthly consumer expenditures for goods and services related to your business. This helps gauge the spending power of the area.
• 😀 🚗 Visibility and accessibility matter. Ensure the location is easy to access with high foot traffic or car counts, such as busy intersections or streets with red lights.
• 😀 🚦 A location with a high traffic count but without easy access (like a lack of red lights) might hurt your business. Visibility is key, so pick a spot where potential customers can easily find you.
• 😀 🌱 Choose a location in an up-and-coming area to tap into future growth. Make sure the area is developing and attracting new residents or workers.

Q & A

Why is it important to look at specific area demographics rather than just city-wide statistics?

Demographics can vary significantly within a city. For instance, in areas like Houston, income levels can change drastically within just a few miles, which could make a huge difference in choosing the right location for your business.

What is a common mistake entrepreneurs make when choosing a business location?

A common mistake is assuming that just because a product or service is missing in an area, the business concept will succeed, or conversely, thinking that a similar existing business guarantees success.

Why should you work with a real estate agent when finding a business location?

A real estate agent helps you navigate the market, providing valuable insights into the area, guiding you through negotiations, and offering tools to make informed decisions without additional cost.

What key demographic metrics should you focus on when choosing a business location?

Key metrics include population size, average household income, and consumer expenditures in the area, as these provide insight into the potential market for your business.

How does traffic and accessibility impact a business location?

Traffic flow is important for exposure, but ease of access (such as being near a red light) can make a big difference in whether customers can easily visit. A location with high traffic but poor access might limit your business's potential.

What should you consider about daytime population when selecting a location?

Daytime population is key because you want to ensure that not only are people living in the area, but they are also working there and available to visit your business during the day.

How do household income levels influence business location decisions?

Household income levels directly impact consumer purchasing power. Locations with higher average household incomes generally offer more potential for businesses that require disposable income from customers.

What’s the importance of understanding traffic counts in a location?

Traffic counts provide an estimate of how many people are passing by your business, which directly affects how many potential customers will see and engage with your store. However, visibility and access (like red lights) can impact how effectively this traffic translates into visits.

What is the difference between an up-and-coming location and an established area for a business?

Up-and-coming locations may offer lower rents and the potential for growth as the area develops. In contrast, established areas have stable traffic and customer bases, but often come with higher costs.

Why is parking an important consideration when choosing a business location?

Having ample parking is essential for customer convenience. Limited parking can lead to customer frustration and may deter people from visiting your business, especially in busy shopping centers with a lot of businesses.