10 Things Before Determining Strategic Locations For Franchise
Thursday, April 26, 2012
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As I wrote in this post, here are 10 things to consider before choosing a location for your frenchise. One of the most important decisions before starting a franchise business is choosing a strategic location. Why? Because location come into play to determine success level of your business. If not or don’t have an opinion about how strategic location you want to select, you should ask the franchisor to give an opinion of that location. Or, ask for advice to franchisor which should be right location for your business.
Typically, franchisor conduct the study (research) market before giving approval to franchise. This research aim to know potential demographic for business and information relating the location. There is no harm if you ask for a more detailed overview of planned and potential place. Here are some to consider in choosing a location.
Population density is one indicator of potential market size business that wants you are in, although this has not become final size. You can ask franchisor, how many total number of people or households that are within your trade area? Is the area still has space to grow? Whether the area was very crowded by houses or apartments, and what effect it has on your franchise? How long that population will exists in the area?
If population density is not linear with purchasing power of its people, it means that location is not appropriate. Therefore, you need to look at how income residents in your trade area. You need to know, how much average income family in area? How many residents of targeted income from your efforts? Is neighborhood near like if they offered a product of your franchise business?
Occasionally, the selected location is in center of trade. Well, wether number of business affected to location? What type of business in that area using a product or service offered by franchise?
There are several types to choose place for your business such as shopping malls, business centers, housing, street and so forth. You need to ask, whether most successful franchisees in the franchise locations such as in malls, in the most crowded, in a separate section of the mall, stand or separate buildings or in industrial centers? Franchisor must be able to provide information about type of this place.
How many vehicles passing per day at that location? Are people passing by will be able to see the sign business (signpost) you? Is the location easily accessible?
If the location is at mall, the best passing center is in the food outlets. Sometimes, on other side of street mall is also a place that was full of people passing by and usually rent is also cheaper. It could also be located in a hospital, college or in the centers of People Crowded.
If the location very far distance to be counter-productive for your employees. Therefore, location should be quite close, especially for your key employees.
If location you choose is not trade area or don’t fit with your business, should not be forced. So, you also need to ask, whether the zone is quite reasonable for your business location.
You should consider also competition level on your business. If the location is already saturated with businesses that offer similar products, it may become not a strategic location for you. You also need to know what the competition that is closest to your business?
You definitely want your business look dignified environment around didn’t interfere with your franchise business. Ask the franchisor, whether the area is? Whether the environment is also good enough?
Furthermore, don’t ever hesitate to ask the franchisor to help you negotiate a strategic location and the rents are cheaper. Because it can be in certain cases, the effort required, for example by the real estate to capture their market.
Typically, franchisor conduct the study (research) market before giving approval to franchise. This research aim to know potential demographic for business and information relating the location. There is no harm if you ask for a more detailed overview of planned and potential place. Here are some to consider in choosing a location.
1. The population density
Population density is one indicator of potential market size business that wants you are in, although this has not become final size. You can ask franchisor, how many total number of people or households that are within your trade area? Is the area still has space to grow? Whether the area was very crowded by houses or apartments, and what effect it has on your franchise? How long that population will exists in the area?
2. Income
If population density is not linear with purchasing power of its people, it means that location is not appropriate. Therefore, you need to look at how income residents in your trade area. You need to know, how much average income family in area? How many residents of targeted income from your efforts? Is neighborhood near like if they offered a product of your franchise business?
3. Number of Businesses
Occasionally, the selected location is in center of trade. Well, wether number of business affected to location? What type of business in that area using a product or service offered by franchise?
4. Place
There are several types to choose place for your business such as shopping malls, business centers, housing, street and so forth. You need to ask, whether most successful franchisees in the franchise locations such as in malls, in the most crowded, in a separate section of the mall, stand or separate buildings or in industrial centers? Franchisor must be able to provide information about type of this place.
5. Number of Traffic
How many vehicles passing per day at that location? Are people passing by will be able to see the sign business (signpost) you? Is the location easily accessible?
6. Crowded Center
If the location is at mall, the best passing center is in the food outlets. Sometimes, on other side of street mall is also a place that was full of people passing by and usually rent is also cheaper. It could also be located in a hospital, college or in the centers of People Crowded.
7. Employee Access
If the location very far distance to be counter-productive for your employees. Therefore, location should be quite close, especially for your key employees.
8. Zone
If location you choose is not trade area or don’t fit with your business, should not be forced. So, you also need to ask, whether the zone is quite reasonable for your business location.
9. Competition
You should consider also competition level on your business. If the location is already saturated with businesses that offer similar products, it may become not a strategic location for you. You also need to know what the competition that is closest to your business?
10. Appearance
You definitely want your business look dignified environment around didn’t interfere with your franchise business. Ask the franchisor, whether the area is? Whether the environment is also good enough?
Furthermore, don’t ever hesitate to ask the franchisor to help you negotiate a strategic location and the rents are cheaper. Because it can be in certain cases, the effort required, for example by the real estate to capture their market.
