According to experts, to choose a good business location, buyers (or renters) need to pay attention to the following points:
Determine location and area
This is the first step that needs to be taken because it directly affects business efficiency as well as the purchase/rental price of the premises. Many people skip this step, so when they find a suitable premises, its area does not meet business needs. To accurately determine the area of the premises, you need to estimate the number of customers who can visit the shop or the number of products sold in the store. For example, for a cafe with a scale of 50 customers, you need to rent a space of about 80m2. For a fashion shop with 500 products, you can refer to a space of 30m2. In general, the more accurately you estimate the area, the easier it will be to find a suitable premises.
A convenient location is an extremely important condition in business, therefore, a convenient location needs to ensure easy traffic for both buyers and sellers, and being close to a residential area is even better because it will have great potential to attract customers.
In addition, issues of direct and indirect competitors also need to be studied, evaluated, and screened in detail. If an area has good conditions but too many competitors, you should consider the benefits and challenges to make the most accurate decision.
Good quality premises are also a decisive factor in business success. Good quality premises are reflected in the quality of facilities here.
Choosing an effective business location is something that everyone who intends to open a store must pay attention to. (Illustration photo)
Consider finances carefully
The rental price of business premises varies depending on the area you choose. For example, in Ho Chi Minh City, the rental price of premises in districts near the city center is often 3-4 times higher than in other districts. Therefore, you need to carefully calculate the budget you can spend to maintain long-term business operations.
If you rent a space, in addition to the monthly rental fee, you should also note that the landlord will require you to deposit 3-6 months of rent in the first month. This is something that many people rarely pay attention to, leading to wasting time negotiating with the landlord and then not having enough money when it comes time to deposit.
List suitable premises
After deciding on the area and business area, the next thing you need to do is to immediately identify a list of suitable premises for rent in that area. To get information, you can refer to newspapers or websites, brokers... But it is best to go directly to that area to find out because you will get the most accurate information.
Usually, premises at the end of the street or at the corner of an intersection will be prime locations to attract customers. Of course, the rental price there will be higher. If you want to find cheap premises, you should refer to prices on small streets or in alleys with high population density.
Evaluate the profitability of the premises
In the early stages of your business, you will have to spend a large amount of money. If you accidentally choose a bad location, your revenue will not be able to cover your expenses. At that time, you will have to continuously spend more money to maintain your business. Therefore, if you want to make a profit, from the beginning, you must accurately assess the profitability of the location to avoid wasting investment.
Don’t rush to rent a cheap place because even if it’s cheap, if it’s in a remote area with few people passing by, it will be difficult to do business. People who know how to choose a business location will be willing to spend 100 million VND to rent a place that can bring in good revenue, but will never spend 20 million VND to rent a business location that has the risk of loss.
To accurately assess the potential of the premises, you need to go to the actual site to observe the population density and living and shopping habits of the surrounding people. If the premises are located near apartment buildings, schools, hospitals, entertainment areas... then your ability to make a profit will be quite high.
Besides, you also need to determine whether your target customers are concentrated there. If you sell expensive items but choose a location in a place with a low cost of living, the positive signal is not high.
In addition, you should also consider the distance of the premises from competitors. "Buy with friends, sell with partners", if you choose a location close to competitors, you can attract the attention of more customers. However, if their supply is enough for the residents there, you will have to compete fiercely, it will take more time and effort to attract customers to your side.
Note the aisles and parking spaces
You should prioritize locations that are convenient for traffic and easy to find to avoid customers getting lost or having difficulty finding the store, because then they will easily "visit" and support your competitors. Locations on one-way streets or roads with median strips are also options you should avoid.
Besides, you should choose premises that are not on the same path as the landlord, because if they park their vehicles or come in and out continuously, it will affect the customer experience at the store.
Check the current status of the site
The current condition of the premises is also something that people who know how to choose an effective business premises often pay attention to. You should prioritize premises that are in a condition suitable for the type of business to save on repair and decoration costs. For example, if you plan to open a milk tea shop, choose premises that have previously been used for milk tea business.
In addition, you should also ask the landlord carefully whether the premises already have water pipes, internet, cable TV. Because it will save you installation costs. If the premises are in poor condition, without anything, you can negotiate with the landlord to reduce the rent (or sell).
In addition to the above factors, you also need to pay attention to the agreements in the contract if you rent a premises to ensure you are not disadvantaged or involved in disputes later.
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