Selecting the Right Location for Your Franchise Business
There is no doubt that when it comes to making a franchise business successful, the location is an essential factor. It is a must that the area where you will put up your business is feasible enough for you to make lots of sales.
But the question is, how could you do it given the factors that you have no idea regarding that? Then this article is right here for you to help you with that particular task.
Here are the tips that can guide you in choosing the right location.
- Check if the location has a large population. This will give you an idea of whether the area is a good place to start a business. This is because of more people, the higher chance that your product will sell, and this is indispensable when buying a restaurant franchise in Philippines.
- Know if it is a public place. If the prospect area is in the public place such as near the school, offices, or the market, you are surely on the right track. Most especially if you are in the food industry. People get hungry daily that is why offering foods in public areas is never a bad idea.
- Know the local laws in the area. This is important because without prior knowledge to such can put you in a lot of trouble. You should know all the business requirements and standard operating procedures of a specific area to avoid problems.
- Be sure that there is low competition in the area. It does not mean that there is already an existing business like yours, you will not try anymore. What we meant here is that you must weigh in your options. If the competition in that area is too stiff then it is not worth trying. The risk is higher than the reward so that speaks for its case.
- The chosen place must be approved by the franchisor. They have several qualifications for the location to be approved. One example is the area that you have chosen must not have an existing franchise near it.
- Having sufficient parking slots is better. There are times wherein most customers bring their cars. So they must have an area wherein they can park their cars. But also be sure that the parking area is secured. So, parking should one key factor when you buy a franchise.
- Great accessibility. It’s time to ask yourself whether your prospective place is accessible to the majority of people.
- Terms of a lease. You should check for the terms of the lease if it is reasonable enough. You should learn how to estimate your possible income versus the amount of money that you should spend on monthly rent or long-term lease. At the end of the day, you should be able to gain a profit to sustain your business.
- Decent source of water and electricity. The place must meet these two essential needs. You must make sure that there are no frequent interruptions on water and electricity as your business can greatly be affected once it happens.
- Development within the area. It is great if your chosen area grows exponentially when it comes to commercialization. As a result, the prices of goods can go up which will allow you to increase the prices of your products as well.
- Local taxes. There are areas wherein additional fees or taxes are required to put up a business. So you must ensure that the local government in that area does not charge too many fees.
- Be knowledgeable with limitations. Before you decide to put up your business in a specific area. Know if the local government allows the products or services that you are offering. In this way, you’ll save yourself some headaches in case it is prohibited to do such business in that area.
But how will you able to do it? Here are some tips that you can utilize in that process of selecting the right place for your business.
- Do some surveillance. Before you finally decide where to put up your business, you should have done some surveillance on various locations. It will help you choose which among the locations the best to put your business on is.
- Learn to ask questions. There is nothing wrong if you will try to ask questions to the residents of the area. If your business is all about foods then you can ask about what kinds of foods they desire to eat. In this way, you will have an idea if your products will sell or not. So doing proper research is truly a must.
- Be versatile and patient. Along the process of finding the right place to put up your business, experiencing obstacles are normal. So do not lose hope instead continue with your goal.
A while ago, you have learned the dos in selecting the right place for your franchise, there are some key points you might want to take note. In this part of the article, you’ll know that a particular place must be tagged as a red flag.
- Check the crime rate in the area. It is not advisable to put up your business in an unsafe area.
- Never rush things up. Things will go wrong if you will not have the patience to find the best place for your business. It is always better to do extensive study first before you finally decide what to choose.
Now you know the different ways to select the right location for your business, you’ll have higher chances of succeeding although there is still a lot more factors to consider. But one thing is for sure, if you have the drive and passion in doing that particular business, nothing will go wrong. There might be obstacles along the way but the most important thing is how you handle them.