1 EP2150 – Entrepreneurship Paul Tilley

Considerations in Choosing a Retail Location: 1. How are your customers going to use you? This is a very important first consideration that many small businesses miss. For example: if you are opening a lunch counter, you may do better in an area where people work rather than where they live. If you are selling auto parts, you want to be fairly close to the local repair shops. Think about when and how your customers will access your business. EP Small Business Development2

2. Look at Logistics Is there enough parking? If you need a loading dock, is there one? Will there be any special infrastructure needs - power, water, trash removal etc.? Is access to the location easy for the customers, or will they get lost? Is the location in a part of town with increased crime at night which may cost you dearly in insurance or shrinkage? EP Small Business Development3 Considerations in Choosing a Retail Location:

3. Good Traffic Bad Traffic Not all foot or drive-by traffic is created equal. However, some locations will charge huge prices for the amount of foot traffic. It's a good idea to be near other businesses that attract customers like yours. Do you ever wonder why car dealerships and restaurants will open so close together? Because car shoppers and diners will go to an area to window-shop and everyone benefits from the spillover. At least spend time in the area you are considering and notice the other businesses and who's shopping there. EP Small Business Development4 Considerations in Choosing a Retail Location:

4. Consider Cost Retail space in malls is pricey. The foot traffic and promotions malls do can bring in a lot of business. However, there's still high turnover at many malls. The most expensive spaces are not always the most profitable. EP Small Business Development5 Considerations in Choosing a Retail Location:

5. Look at History Every town has at least one retail or restaurant location that spits out business failures over and over again. It always amazes me to see a space where a new restaurant opens at least once a year. If a space seem to have a high rate of business failure, maybe there's something not working there. EP Small Business Development6 Considerations in Choosing a Retail Location: