Selecting a good location for your start-up might be very challenging and daunting. To assist you to make the best choice, we have prepared this article with some helpful advice. This article highlights the importance of carefully choosing a good business location, factors to consider, and a few recommendations of good locations for specific types of enterprises.
Why does the location of your business matter?
The location of your business can either boost sales or dwindle them. A good business location would boost sales in a short while. Finding a strategic location is very crucial and can determine the success of your business. Ideally, your business should be close to your prospects/clients. Why is this important?
What to look out for
You should take into account these key factors when choosing the location of your establishment.
-
Proximity to prospects/clients: Your business should be located close to your clients. This would make advertising much easier. Your visibility would leave an impression on your prospects and they would likely remember you when they need your product/service.
-
Government regulations: State laws may have an impact on how your business operates. Because of local laws, some states in Nigeria, for example, do not allow the public sale or consumption of alcohol or alcoholic beverages. It would be unlawful to set up a bar in such regions. Respect for local laws is required.
-
Access Roads: If your company is located in a remote area with poor access roads, your customers may be reluctant to return. They would most likely choose your competitors instead. In such a case, the only way to compensate your clients would be to provide very low-cost home/office delivery services.
-
Location of competitors: Take into consideration the location of your competitors. Analyze the reason behind their choice. This might offer information about the ideal location for your company.
Apart from the location of your business, find out other secrets to being successful in business.
So here is a list of some businesses and the possible best locations to site them.
-
Car dealerships - Lagos is the choice destination for most vehicle dealers because of its proximity to the seaports. This business would also thrive in cities with a dense population of high-income entrepreneurs like Abuja, Kano, and Port Harcourt. Here are a couple of helpful tips on how to start a car dealership business. https://www.carmart.ng/public/blog/how-to-be-a-successful-car-dealer-in-nigeria/
-
Bar/beer parlour - The major patrons of alcoholic beverages are average-high-income earners who reside in big cities. However, this business cannot be operated in areas with governmental restrictions on the public sale or consumption of alcohol.
-
Hatchery/Poultry Farm - According to recent findings, Ibadan, Oyo state, Plateau state, and Kano state are Nigeria's largest producers and suppliers of poultry products. If you intend to set up a big wholesale store for poultry birds or poultry products you might consider these locations. You can equally join the supply chain as a distributor to other big cities in high demand for poultry/poultry products.
-
Beauty salon - Beauty and cosmetics enterprises thrive in regions densely populated with average and high-income young women. These populations reside in the big cities of Abuja, Lagos, and Port Harcourt. A good population of prospects for this business can also be found on campuses of tertiary institutions. To reach your prospects, you may also set up an online store on different social media networks.
-
Microfinance Bank (MFB) - The majority of the clientele of MFB are traders. This is due to the frequent demand for credit facilities to raise working capital or for business expansion. It would be necessary to target adverts to this demographic and locate local branches close to them.
-
Barbershop - The best location for a barbershop would be a region with a high population of young men. This business would thrive in urban areas because of the influx of young men in these cities.
This list is by no means exhaustive, it only seeks to provide a framework for further research by the entrepreneur.
Before delving into any of these businesses, be sure to come up with a standard business plan. Here's how you can write one.
The most recent survey on the "ease of doing business in Nigeria" is noteworthy; it ranks Gombe state first. Entrepreneurs may take this into account and undertake a feasibility study on the most profitable venture in this state. We have several articles on the best businesses to start in almost all states in the country. Consider this one about the best businesses to start in the country's capital city.
The information provided is for information/educational purposes and should not replace doing your research, thus you bear sole responsibility for your business location and outcome.
Partner with us at SmartSMSSolutions for your business campaigns and communication needs. We offer amazing bulk messaging services at affordable costs. Visit our webpage to create a free account with us. You are welcome to leave us a comment below.