Posted on: 27 October 2017
If your business is not thriving in its current location, then before "throwing in the towel," it is important to learn whether it is failing due to the reasons you currently suspect, such as lack of interest in your product or service, or simply due to its location. A lot of new business owners make the mistake of choosing the location of their new business based on the cost of the commercial space they are leasing alone. However, there are many other factors a business owner needs to take into consideration before choosing their new commercial space.
Before you give up on your business, read on to learn two important factors to consider before simply moving to a new business location where your business may begin thriving.
1. The Demographics of the Local Area
If you didn't look into the demographics of the local area before you rented your commercial space and haven't looked into them since, then you may not realize that there are few people of your target demographic in the local area.
For example, if you are selling a luxury product and you are located in an area where the local economy is not thriving, then moving to a new business space that is located in an area where the local economy is thriving is a great idea. You may pay a few extra dollars each month in rent, but you could see your profits rise exponentially when you are located in the midst of your target customer base.
You should also look into the average age of the local population and determine if there are many locals that fit within the age group of your target demographic.
2. The Foot Traffic and Proximity to Local Highways
Another important aspect to consider before choosing to give up on your business is how easy it is for customers in other areas to access your business. If you are in an area that isn't near a highway or is very difficult to locate due to customers having to make many twists and turns after exiting a highway, then the problem may not be your product or service, but the fact that customers who have to drive from other areas to visit your business simply have trouble finding it. Try moving to a new location that is near a highway exit to see if your business begins thriving.
In addition, you should consider whether your business receives a lot of foot traffic or not and, if not, realize that there are many commercial spaces that are located in areas that many people walk by each and every day. If you sell a product that people would consider grabbing "on the go," such as coffee or sandwiches, then finding a commercial space that receives a lot of foot traffic could be the key to your business's success in the future.
If you think of "throwing in the towel" with your business due to not earning the profit you need to stay in business, then your product or service may not be the problem. The problem may be your business's location instead. Look into a new commercial space that is surrounded by more of your target demographic, receives a lot of foot traffic, and/or is located close to a highway exit.
For more information and options, talk with a real estate agent or a commercial leasing company.Share