The best location for a brick-and-mortar retail business combines visibility, affordability, and lease terms you can live with. You need to be where the action is, so deciding where to put your business is every bit as important as the business you decide to go into.
Take the time to analyse the areas that appeal to you. Study the business and consumer pages to see where you can find business support services and a growing community of people with regular incomes and interest in the goods or services you plan to offer.
There are three phases of choosing a location for your retail business: Selection of a city, choice of an area or type of location within a city, and identification of a specific site.
In choosing a city, investigate these main factors:
- Size of the city’s trading area
- Population and population trends
- Total purchasing power and who has it
- Total retail trade potential for different lines of trade
- Number and size of competition
- Quality and aggressiveness of competition.
Once you have a general idea of what city you like, choose an area or type of location within that city by evaluating these:
- Customer attraction power
- The nature of competition
- Availability of access routes to the stores
- Zoning regulations
- Geographic direction of the city’s expansion
- General appearance of the area
- Sales and traffic growth prospects of the trade area
- Demographics of neighbourhoods.
These are factors in narrowing down your site choices:
- Traffic flow
- Complementary nature of neighboring stores
- Adequacy of parking
- Vulnerability to competition
- Cost of the site.
Use the Scribble Maps app to create your power zone. Place an “X” where your business will be. Then draw three circles that represent 5, 10, and 15 miles from you. This is where your bread-and-butter customers live and/or work. Will their demographics support 75 percent, 20 percent, or 5 percent of the sales you need?
Google Trends is a great research tool to identify the location of differing appetites around the world. It tracks the frequency of search terms by rank, location, and language. For example, the San Francisco Bay Area comes up high on the list when searching the term “raw food” making a raw juice and snack concept well placed for success.
You’ll also want to see if the population is growing or declining. Are there seasonal variations in population that favor your type of business, or will you suffer when students, families, or snowbirds leave town? And you’ll want to check out the activity during the week, weekends, daytime, and nighttime to see if it’s in alignment with your business plans.
Pinpointing a specific site is particularly important. In central and secondary business districts, small stores depend on the traffic created by large stores or a group of stores.
These stores depend on attracting customers from the existing flow of traffic. However, where sales depend on nearby residents, selecting the trading area is more important than picking the specific site.
Another factor that affects site selection is the customer’s view of the goods you sell or the services you offer. Customers tend to group products into three major categories: convenience, shopping, and specialty goods.
1. Convenience goods
Convenient goods are usually low-priced, frequently purchased items that require little selling effort, are bought by habit, and are sold in numerous outlets. Candy bars, newspapers, cigarettes, and milk are examples.
Quantity of traffic is most important to stores handling convenience goods. The corner of an intersection that offers two traffic streams and a large window display area is usually a better location than the middle of a block because convenience goods are often purchased on impulse in easily accessible stores.
If consumers must make a special trip to purchase food and drug items, they’ll want the store to be close to home. Studies show that the majority of people in the central city patronising these stores shop within one to five blocks of their homes, and in suburban locations, the majority of customers live within three to five miles of the stores.
For rural locations, the average driving time is 10 minutes, with 20 minutes being the maximum time customers will travel to a convenience store.
2. Shopping goods
Usually have a high unit price, are purchased infrequently, and require an intensive selling effort. The customer does price and feature comparisons, and products are sold in selectively franchised outlets. Examples include men’s suits, automobiles, and furniture.
For stores handling shopping goods, the quality of the traffic is important. While convenience goods are purchased by nearly everyone, certain kinds of shopping goods are purchased only by segments of shoppers. Moreover, it’s sometimes the character of the retail establishment rather than its type of goods that governs the site selection.
For example, a conventional men’s clothing store generally does best in a downtown location close to a traffic generator like a department store. On the other hand, a discount menswear store tends to require an accessible highway location.
In many cases, buyers of shopping goods like to compare the items in several stores by traveling only a minimum distance. As a result, stores offering complementary items tend to locate close to one another.
Another excellent site for a shopping goods store is next to a department store, or between two large department stores, where traffic flows between them. Another option is to locate between a major parking area and a department store.
A retailer dealing in shopping goods can have a much wider trading area than convenience goods stores. Without a heavily trafficked location, this more expensive type of store can generate its own traffic. In this case, a location with a low traffic count but easy accessibility from a residential area is a satisfactory site.
3. Specialty goods
Usually have a high price tag, are bought infrequently, and require a special effort to make the purchase. Precious jewelry, expensive perfume, and rare antiques are in this merchandise category. Specialty goods are often sought by customers who are already “sold” on the product, brand, or both. Stores catering to this type of consumer may use isolated locations because they generate their own consumer traffic. In general, specialty goods retailers should locate in neighborhoods where the adjacent stores and other establishments are compatible with their operations.
Only the exceptional operation, such as a restaurant or a freestanding discount house, can survive in isolation. A cluster of stores creates more traffic, exposes more people to your business, and creates a buying atmosphere that a single store cannot. Customers are attracted by crowds and like their shopping trips to be social outings.
Having said this, it’s critical to select the right community and site for your particular store. Will the other businesses generate traffic for your store? Or will you be located near operations that may clash with yours?
For example, a children’s store in a service centre of hardware stores and automotive repair businesses doesn’t get enough exposure to its target audience to be successful.
This article was originally posted here on Entrepreneur.com.
3 Companies With Memorable Slogans, And How To Create Your Own
Three companies that have enjoyed these benefits as a result of creating memorable business slogans are Nike, Carlsberg, and Apple. Let’s look at each one now.
A good slogan serves many valuable roles in business. First, it reinforces recognition of your brand. After hearing it a few times, your consumer instantly thinks of you when hearing it again. If it’s catchy enough, they may even find themselves saying or singing it in their head, reinforcing your brand even more.
Slogans also share a little bit about your company. For instance, if your slogan is funny, it says you have a sense of humor. If it contains your goal or mission, it tells the consumer what is important to you. Some slogans share the problems the company is trying to solve or the consumer its trying to help, making it easier to identify the target market.
Finally, a slogan sets you apart from your competitors. It differentiates you from all of the other companies who offer similar services to you. And if it’s memorable enough, it puts you ahead of them in your consumer’s minds.
Three companies that have enjoyed these benefits as a result of creating memorable business slogans are Nike, Carlsberg, and Apple. Let’s look at each one now.
Company #1: Nike – Just Do It
Though many people use Nike’s ‘Just Do It’ slogan as a reminder that they can do amazing things if they just put their mind to it, its author, Dan Wieden, reports that this line actually has a grim beginning.
In fact, it was an idea he derived from a statement made by Gary Gilmore, a double murderer who, before being executed by a firing squad exclaimed, “Let’s do it!” Still, it has stuck in consumer’s minds and is undoubtedly one of the most memorable slogans of all time.
Related: Registering a Trademark
Company #2: Carlsberg – That Calls for a Carlsberg
Initially, Carlsberg’s slogan was ‘probably the best beer in the world.’ Many consumers came to know and love this slogan; however, in 2011, the company rebranded and created a new slogan: ‘That Calls for a Carlsberg.” The goal of this new slogan, according to CEO Jorgen Buhl Rasmussen, was to encourage the consumer to do good things and then enjoy a Carlsberg after as a reward for a job well done. Both have stuck in the minds of consumers, albeit with some discrepancy as to which one is most preferred.
Company #3: Apple – Think Different
Apple is a company known for thinking (and creating) outside the lines, so its ‘Think Different’ slogan fits it perfectly. According to Rob Siltanen, creative director and managing partner at the company that helped design this Apple pitch, though there are many accounts of how this slogan was created, its true inventor is Craig Tanimoto. Siltanen says that Tanimoto came up with the idea to use black and white photos of some of the most revolutionary people and events of all time and, atop each one, simply display the words ‘Think Different.’ Catchy, right?
How to Create Your Own Memorable Slogan
These are just three examples of how creating a memorable slogan can help your company get — and stay — in the minds of your consumer. So, how do you come up with this type of campaign?
One option is to get some of your company’s best talent together and see what slogans you can come up with. Have everyone submit one or two ideas and talk them out. See if any jump out at you and, if not, use them to inspire you to come up with even more possible ideas.
Another alternative is using a slogan generator. This enables you to come up with a simple, memorable slogan using keywords related to your brand. Just go through the list and of results and see which ones stand out. You could even pick your top two or three and let your social media followers vote as to which one you should select.
If you find yourself at a dead end and unable to come up with a memorable slogan, or if you lack the creativity or the time, you can also hire a marketing firm to help. Give them a little insight about your company and see what slogans they create. It may cost you some money to take this route but, as companies like Nike, Carlsberg, and Apple have taught us, a good slogan can really propel your brand.
Dear Family And Friends Of Entrepreneurs…
Young entrepreneurs often struggle to establish their businesses as they are not getting the support they need. Sometimes it is not only the obvious support of financiers and supply change developers which is lacking –but also not having that critical “home-ground support” can negatively affect the success of your venture. How can family and friends support entrepreneurs?
Entering the market as a newbie entrepreneur is a brave step, and having your family and friends share in your vision for success is critical. Once you have convinced them that being an entrepreneur is in fact “a real job” – one that requires a lot more sacrifices and hard work than a salaried worker – you can continue to encourage them to support your journey, to ultimately share in your success.
Get a job
In some communities, being an entrepreneur is not recognised as a profession. Therefore, those who pursue enterprise development are seen as irresponsible or lazy as it is not regarded as ‘real’ employment. Societal pressure to attain certain material possessions thus prevents them from pursuing their true passion.
This kind of resistance discourages a lot of entrepreneurs, making their pursuit for success even more difficult.
Finding out who your real friends are
Financial support is the most obvious support needed by entrepreneurs due to a lack of capital and start-up funding, as well as irregular payments and long periods of being cashless due to procurement holdups and fluctuation in the market for your product or service. Not everyone will stick with you in these times – and that’s OK. You may end up finding out who your real friends are, and these are the people who will give you emotional and social support to keep you focused and motivated.
“I know a guy….”
Another issue is friends and family looking for discounted prices as they know the owner. This means that they don’t see the value of the product or service, nor do they respect the owner. By asking for products and services for free, or at a reduced price, they end up taking advantage of their relationship with the entrepreneur and do not financially support his/her the business.
So, if you have friends or family who are business owners, set an example by supporting them in the following ways:
- Be willing to pay the full price of the product or service offered.
- Be kind when giving negative feedback – make sure it is constructive.
- Compliment them on good products or service. Share positive reviews on your social media pages.
- Share and promote their business among other people.
- Be patient and willing to help them establish their businesses.
Be prepared to listen to their dreams, hopes and frustrations. Sometimes, they just need an ear to vent about a bad day. Support them with a word of encouragement to keep going.
Why Embrace The Struggle?
Entrepreneurial success hinges on your ability to approach challenges with the right mindset.
Self-help and business coaching advice is littered with platitudes, which makes it difficult for entrepreneurs to know what they should take to heart. However, one universal truism that most successful entrepreneurs attribute to their success is their willingness and ability to endure the struggle.
It’s a lesson I learnt first-hand when building our ad-tech and Facebook Marketing Partner business, Popimedia. One of our sternest tests came when we moved into new premises and took on more staff to accommodate our exponential growth. Then, amid new and significant financial commitments, some of our pipeline never materialised.
It was at this time that my son was born, and our family had just moved into a new house. To preserve the business, we were forced into retrenchments and directors didn’t take a salary for a while. And, with a lower head count it became difficult to deliver on client deadlines. Needless to say, my personal and professional level of discomfort was at an all-time high.
We reviewed our operations and streamlined where we could. More importantly, though, the experience taught us a number of invaluable lessons.
Lesson #1: Reframe your context
Our leadership approach, our business mindset and our attitude needed to be drastically reframed.
There is a quote that has always stuck with me, which is: “The antithesis of comfort is struggle.”
I believe a person is moulded by the way they deal with struggle. That’s why I’ve always been inclined to welcome a proverbial punch to the face, and use as a mantra the phrase, “comfortable being uncomfortable”.
Being “uncomfortable” forced Popimedia into rapid innovation – and it was this innovation that led to a sea-change in the business. We learned how to scale, how to improve service levels, how to do what we do better, faster, more efficiently.
As a result, and without increasing our staff complement, our year-on-year growth has topped 100%. What was, at the time, the business’s greatest challenge became its greatest ally, and our biggest lesson.
Lesson #2: Fail fast, and learn from it
Obviously, this approach is not about making life difficult for the sake of personal and professional growth. It’s about understanding what is: expecting it to be difficult and taking a constructive approach towards failure and struggle.
There is one guarantee in business: you will experience failures, and you will struggle.
Central to this is your ability to recognise your failures for what they are, and quickly. This allows for a rejigging of processes, attitudes, operations, and sometimes even objectives.
My personal attitude to failure was reframed by simple sales stats. I came to understand that rejection was inevitable – but when it does happen, it brings with it opportunities. I always ask: “Why don’t you want my product? How is it not meeting your needs?” This way, “failure” is transformed into an opportunity to better understand the market and my clients.
This feedback loop has proved crucial, and allowed us to become what we are.
As an entrepreneur, the pressure never ends and you’ll never ‘arrive’. At Popimedia, we’ve come to embrace every opportunity that takes us out of our comfort zone. Working through failure is the foundation on which the entrepreneurial spirit is forged. It is the willingness to try again following a rejection, or to keep grafting knowing that there’s no guarantee of a pay cheque at the end of the month.
And doing so with the ‘chutzpah’ – the sheer audacity – to endure the hardship through mental toughness and a passion for what you do, becomes your greatest asset, because when you get comfortable, you become complacent… and complacency will work you into irrelevance.
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