The StartUp Blog at PartnerUp

Location, location, location. It may be an overused mantra, but if you’re searching for retail space it’s all that matters. What makes location so important is that it’s intertwined with traffic. Who cares about your sweet new product if people aren’t willing to go out of their way to get to your store? Retail hot spots can get a little pricey, but the right location brings in people, which means it has the potential to pay for itself. So consider traffic patterns, demographics and your competition. They can make all the difference in your business. 

Traffic Patterns

Traffic patterns don’t just refer to vehicle traffic; they also refer to foot traffic. Consider highways, roadways and walkways. Each is significant in its own way. Being located near an exit off a major highway can bring loads of traffic to any business, but drivers usually need a good reason to exit the highway. So consider the presence of gas stations and restaurants in the area. Busy city streets are also big traffic generators. But you must make sure that parking in the area is plentiful, otherwise drivers will speed on by. Highly walkable areas seldom generate the immense amount of vehicle traffic that major highways and roadways do, but don’t write off foot traffic just yet. People are often willing to drive greater distances just to spend some time walking around, shopping and enjoying an area.

You should also look at other major traffic generators in an area. Office buildings, hospitals, factories and universities all bring large amounts of traffic through a neighborhood.

Demographics

Finding high-traffic areas will only get you so far, then demographics need to take over. If your location isn’t bringing the RIGHT people through your door, then your product or service, regardless of how cool it may be, means nothing. It would be stupid to put a high-end clothing store in a rural area or a hardware store inside of a mall. Why? Because you are reaching the wrong clientele. Rural residents aren’t going to flood through the doors of a high-end clothing store, just as hardware store frequenters aren’t going to spend the afternoon at the mall.

So look at age, income, gender or anything else that might be a factor. This information is crucial in finding the right location. Whatever demographic determinants you consider, make sure that they fit closely with the clientele you are looking for, and then make sure that the location of your business convenient for them.

Competition

If you’re thinking that you don’t want to be in close proximity to one of your competitors, think again. By setting up shop near competitors, you can capitalize off the time and money they spend marketing their businesses. If your competitors are flourishing in a particular area, then they are most likely located near the right demographic. They may have also spent their marketing efforts trying to drive even more traffic to the location. If you’re confident that your product or service can compete, then why not use their efforts to your advantage.

Locating your business near competitors will also force competition, and competition is always a good thing. It makes both parties work harder and therefore generates more business.