When setting up a business, one of the first questions that arises is: Where to locate my business? Choosing the right location for your business is one of the keys to success.
Locating your business in a good area will reduce marketing and advertising costs, it will be known to a wider public, it will increase its notoriety, and customers will have a better image of your business.
Take the centres of large cities, for example. The exposure of your business to thousands of people on the main avenue will improve your sales, but also, those who do not enter will know both the logo and the name of your brand.
10 Tips for locating your business
Correctly locating your business will influence the success of your business. Therefore, we bring you 10 keys to consider to know where to locate your business:
1. Is your competition located in the same area?
You should analyse the presence of competition in the area where you want to locate your business.
Ideally, you should locate your business in an area where your target audience is located and where there is almost no competition.
However, there are businesses where the target public moves in limited zones or areas, so there will be competing businesses close to your business.
For example, if you want to set up a luxury jewellery store, it would be ideal to locate it in one of the areas with the highest purchasing power, even if there is a lot of competition.
Thus, you must decide whether it is worthwhile to locate your business in an area very close to your competitors. You will need to offer better services and/or prices to ensure the success of your business.
2. Where is demand concentrated?
Another key to take into account is to choose areas where demand is concentrated. For example, locating a garage near a car dealership or a consultancy near the tax building are excellent strategic locations.
3. Be clear about who your target customer is
There is no point in locating your business with the above in mind if you are not clear about who your target audience is. To do this you need to know:
- Gender
- Age
- Purchasing power
- Professions.
- Concerns
- Motivations
This will not only provide you with information on where to locate your business but also how to improve the quality of your services or products.
4. Public affluence
Now that we know who our target audience is and where the demand is concentrated, another key to consider would be whether there is a high influx of people in the area where our business is located.
Examples of these areas could be the centre of a large city or shopping centres, so the more people passing through, the more likely it is that they will pass by our business.
5. Choose a well-connected area
Your business should be easily accessible, either by public transport, such as metro, suburban trains, buses or taxis, or have parking areas for private vehicles.
This will increase the likelihood of your target audience entering your business. At the same time, it will be easier and more convenient for your carriers, workers and suppliers to access it.
6. Give visibility to your business
Both your shop window and your logo must be visible to the public. It is useless to be in the busiest area of the city if potential customers do not know what your company offers. And remember, visibility at street level is just as important as your company’s online visibility.
7. Analyse the atmosphere of the area
Regardless of your professionalism, customers will judge the area or zone of the city, along with your services or products. For example, if you have a law firm, you will have a better image of your company if you locate it in the centre of a city rather than in the periphery.
8. Cost of renting or buying premises
Rental prices in central areas can be so high that it may not be worthwhile to locate your business. Therefore, make a study of the costs of rent, purchase and supplies in the short and long term, as this can take its toll on your business.
9. Potential profits
Closely related to the previous point, we must assess whether the potential benefits we can obtain by locating our business in that area and whether it compensates the costs of rent and supplies. Remember that, at the beginning, almost all companies start with losses. It will be the study of the market and the viability of the product or service that will allow you to know these potential profits.
10. Establish relationships with other companies
Establishing partnerships or symbiotic relationships with other companies is key when you are starting out, either because you could cover a department that the other company does not have or because you could meet potential clients for your business. In this sense, networking events are a good way to make contacts.
The best areas in Madrid to locate your business
At Ibercenter we have three business centres located in Madrid: Gran Vía, Velázquez and Azca. Three of the best areas in which to locate your business: an influx of clients, the possibility of establishing relationships with other companies and flexible renting, so that you can adapt the rental costs to the needs of your company.
A business centre such as Ibercenter can be a fantastic opportunity for any company or business, whether young or experienced in the sector. The flexibility in hiring and complementary services will provide your business with everything it needs.
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