How Location Affects the Success of a Business


The location of your business is one of the most important factors to consider when measuring the success of a business. The right location, after all, will attract the right kind of market. Even when your business isn’t exactly trendy, you will attract your target market if your location has high foot traffic or is in the middle of the business district. You will still have a good chance of hitting your sales quota and growing your client base.

Perception of the Location

Startups tend to begin at home to save on the cost of rental fees. This isn’t exactly the wisest of choices because it doesn’t give a good perception of the business. In fact, many people will believe that your business cannot be trusted because it has no physical address. Even if you convert a part of your home into an office, it will still be hard to come off as professional.

Position your business where people like to go. Even if it costs more than being outside of the city, remember that perception is one of the things that will drive success. For example, since New York is on the list of the top hubs in the world for startups, then it is considered the mecca of success for beginning enterprises.

The curb appeal of your business location matters, too. You cannot be as creative in your home because you have to follow the rules of the homeowner’s association, for example. Whereas in a commercial district, you are free to use whatever improvements you have to for the curb appeal. One option is to have a custom-made address stone so that it will be easy for your customers to find your office or store.

Efficiency in Serving

The business location also matters in the efficiency of the delivery of products and services. Even if you’re operating an e-commerce store, it matters to your customers where the items are coming from. Your registered address matters to them, too. If they see in the receipt that your business is located in a residential area, they will not think you have the proper space, tools, and equipment to handle the products you are selling.

They may also be reluctant to buy from your store when the address is in a residential area. They will want the warehouse to be somewhere near them so that delivery will be fast and returns will be efficient. Unfamiliar locations are a no-no, especially if the customers are required to go to the store themselves.

customers at a store

Providing Visibility

Even if your business is doing successfully online, nothing compares to being visible to your customers. If they don’t realize that your business exists physically, they will forget about it. Studies already showed that businesses in high-traffic areas are more successful than those in industrial parks and strip markets. In commercial and business districts, you are marketing your business exactly to the type of audience that you are targeting.

Ensuring Safety and Convenience

Most customers are okay to travel longer to purchase the items they want. However, as much as possible, don’t let your customers be inconvenience by your business’ location. Even if they are ready to do it, provide the safest and most convenient way possible to serve them. The best location is one that your target audience can visit easily and conveniently. If they have to travel more than an hour to get to your store or office, that’s not going to help your business.

Your location should also provide a sense of security for your customers. If they don’t feel safe visiting your store, restaurant, or office, do you think they will do it? Familiar places with high foot traffic are the most successful business locations. Since they are already familiar with the location, they won’t feel the need to leave immediately after transacting with you. They’ll look around the shop and not feel the urge to be done quickly.

Even at nighttime, they will feel comfortable visiting your business. This is the kind of security every business wants to provide its customers. It’s an effective way to open opportunities for the business.

Admittedly, many businesses are having difficulty maintaining a physical location right now because of the pandemic. Some of them had to close their doors permanently, while others had to move into their homes. These are challenging times no matter what industry your business belongs to. However, if you want to give your business a chance, you have to do your best to provide to your customers something that your competitors could not—consistency in the business location, operating hours, and safety and convenience.

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