How
do you choose a business location
for your franchise?
| Where
you want your business to
be located may, at first,
seem like a fairly simple
question but the answer
depends on several things.
Let's look at the list! |
-
At Home? Yes, that
would certainly simplify getting
to work (as well as child
and pet care). This option,
however, is often not possible.
To begin with the "home-office"
choice is only available for
certain types of businesses.
If you plan to offer a service
which does NOT require your
being at the client's location
(i.e. typing documents on
your computer, repairing small
items, sewing and the like)
you can probably work at home
providing you have the necessary
equipment at your disposal.
Likewise for small-scale selling
ventures where you can securely
keep your inventory in your
garage or a spare room. Some
services, however, must be
provided to clients at their
sites (for example, you can't
mow a customer's lawn anywhere
but on his or her premises!).
In a lot of cases a business
will require more space than
you presumably have in your
house or apartment. If widgets
come in boxes a foot square,
and you expect to sell them
100 at a time, you'll be running
out of storage space very
quickly. To further complicate
things many jurisdictions
have zoning or other laws
which strictly limit what
kind of business, if any,
can be operated within residential
areas.
-
In Rented or Leased Premises?
This could well be a better
way to obtain the required
space. It will, however, take
a reasonable knowledge of
the facts concerning commercial
properties in your area or
alternatively in the one in
which you plan to do business.
You'll need to know how to
tell a good locations from
a bad location. You'll also
have to be familiar with rental
rates so you can tell bargains
from "rip-offs".
Finally, you'll have to know
how much space you'll require
and what type of parking or
client access will be necessary
for your operation. Once again,
you'll need to be familiar
with zoning and similar by-laws
to ensure that you are allowed
to operate the type of business
you're thinking about in the
location you're considering.
You'll also have to know how
to negotiate the best lease,
not only in terms of rent
but also in terms of what
your landlord/lady will be
providing. Who will pay the
utility bills? Who will pay
for insurance coverage! What
does the lease have to say
about what can and can't be
done on the premises? These
should all be valid considerations
when you make a long term
commitment to rent or lease.
-
In Property Purchased for
This Purpose? This gives
you the advantage of profiting
should real estate prices
increase in subsequent years.
It also, however, demands
a substantial investment at
a time when you will need
as much of your capital as
possible to set up the business.
You may opt to erect a building
tailored to your specific
requirements and, in some
cases, whose design may be
trademarked by the franchisor.
Should you ever want or need
to sell your real estate holdings
this could create problems.
Most
franchisors have staff that
will provide you with extensive
advice on the selection of your
location. They can, as well,
arrange the necessary lease
on an appropriate property and,
if necessary, the construction
of the required building(s)
in which to operate.
They will request your preferred
location, advise you of whether
that location is feasible or
even possible (they may only
be licensed to operate in certain
states or locations) and then
assist you in selecting an appropriate
site. Keep in mind that your
success is in their best interest!
They have at their fingertips
extensive studies and statistics
on the demographics for most
locations as well as 'guidelines'
to follow. These include information
pertaining to the distance to
similar operations (their own
or competitive) as well as information
on comparative lease rates and
other data needed to intelligently
make a choice as to your business
location.
In
summary, where you would like
to run your business may only
be partly your decision. There
are numerous decisions you can,
and must, make that will strongly
influence this.
What you should be asking yourself
is how strongly you feel about
this area.
If there was a fine business
opportunity which required you
to move to Pago Pago and work
from a hut made of tropical
leaves, would you do so with
enthusiasm?
|
