January 7, 2025
By Terrand Smith, Founder/CEO, 37 Oaks
At 37 Oaks, we are dedicated to educating and preparing small businesses nationwide for growth in both online and retail markets. We understand firsthand how crucial it is to find the perfect location for your business.
Location is Everything. When considering a storefront business, you quickly realize that picking the right spot is more than finding a place with high foot traffic. It’s about aligning the location with your goals, customer needs, and operational realities. We have compiled a checklist of our learnings and insights to help you find the right store location.
1 | Define Your Style Of Operation
The first step is understanding your business style. Are you offering convenience goods that need quick access? Or are you selling specialty items that customers will go out of their way to find? Narrow down areas that align with your brand identity and growth potential.
Consider how your product category impacts your location needs:
Convenience Goods: These require high visibility and easy access, often in busy shopping areas or near residential neighborhoods.
Shopping Goods: Customers may take more time comparing options, so being near complementary stores can encourage cross-shopping.
Specialty Goods: Unique products thrive in destination-style locations, where customers are willing to travel specifically for your store.
2 | Make Branding + Positioning Work For You
Your address says a lot about your business. Aim for a location that resonates with your target audience—not just for its convenience but for the prestige it adds to your brand. Being near other high-traffic, and brand-aligned businesses can boost visibility and foot traffic as well.
Ask yourself:
Does the neighborhood reflect your brand’s values and aesthetic?
Will being in this location elevate your credibility in the eyes of your customers?
Are there nearby businesses that align with or complement your brand image?
3 | Demographics Are Key
Understanding the local community is essential. In researching an area, look at population size, income levels, and customer habits. The goal is to ensure the community’s profile matches your ideal customer.
Workforce availability and accessibility is another big factor. Your location needs to have close access to and be accessible to a pool of talented people to support operations.
Helpful resources to research this information include:
Local Economic Development Organizations
The Chamber of Commerce
US Census data
AI search such as ChatGTP and Gemini
Key demographic questions to ask:
Does the local population have enough of your target customers to sustain your business?
Are there economic or industry trends that might affect the area’s stability?
Is there sufficient talent nearby to meet your hiring needs?
4 | Traffic Flow Matters
Make sure you evaluate both foot and vehicular traffic. Monitoring activity at different times of day and week helps gauge the area’s potential.
To evaluate traffic flow effectively:
Visit the location during peak and off-peak hours.
Observe the profiles of people passing by—do they match your customer base?
Check for nearby dead zones that could affect visibility.
5 | Parking Accessibility Is Crucial
Parking can be a dealbreaker. Customers traveling by vehicles won’t stick around if parking is a hassle. Ensure your store offers enough parking spots to meet industry standards—about 5-7 spaces per 1,000 square feet of your retail location.
Other parking considerations:
Is parking free, or will customers need to pay?
Are the spaces easy to access from the main roads?
Is there designated parking for employees and suppliers?
6 | Gain Competitor Insights
Surprisingly, nearby competitors can be more of an asset than a threat. You can benefit from their marketing efforts and overflow traffic. However, it’s also important to assess whether the competition will enhance or hinder your growth.
When analyzing competitors:
Look at their strengths and weaknesses—how can you differentiate?
Consider whether the area is oversaturated with similar businesses.
Use their presence to gauge customer interest in your product category.
7 | Leverage Surrounding Businesses
Being near complementary businesses can help you create a network. Nearby stores can not only generate foot traffic but also become customers and suppliers. Area restaurants and childcare facilities can also become great perks for employees.
Think about:
Can nearby businesses drive traffic to your store?
Are there services or amenities in the area that make it attractive for employees?
Can you partner with local businesses for promotions or events?
8 | Navigate Ordinances + Zoning
Understanding zoning laws can save you from potential headaches. Restrictions on signage or business types can be limiting, so double-check everything before signing the lease.
Steps to take:
Research zoning regulations for your desired location.
Check for restrictions that might limit your operations, such as noise ordinances or alcohol sales.
Consult with local real estate agents or legal experts to avoid surprises.
9 | Infrastructure and Modern Needs
Make sure your building has the necessary utilities and technology infrastructure. Older buildings often lack high-tech capabilities, so an independent evaluation was worth every penny.
Ask yourself:
Does the building’s infrastructure support your current and future needs?
Are there hidden costs in upgrading utilities or technology?
Is the space compatible with the specialized equipment or processes you require?
10 | Consider All Operating Costs
Beyond rent, factor in utilities, taxes, and maintenance. Incentives like tax breaks and grants can make a significant difference to your bottom line.
Other costs to consider:
Insurance premiums, including liability and property coverage.
Security measures, such as cameras or alarm systems.
Regular maintenance and unexpected repair costs.
11 | Financial Viability + Hidden Costs
Calculating start-up costs, such as lease deposits and renovations, can provide a realistic view of your budget. Also, plan for unexpected expenses like repairs or higher insurance premiums.
Key steps:
Create a detailed financial projection for the first year.
Build an emergency fund for unforeseen expenses.
Compare the total cost of different locations to ensure affordability.
12 | Research Market Trends
Ideally, the area chosen should be poised for growth, with planned infrastructure improvements and community projects. Staying updated on local market trends can ensure you are investing in a promising location.
To stay informed:
Attend local council meetings or business forums.
Research planned developments or community investments.
Monitor shifts in consumer behavior and industry trends.
13 | Safety + Risk Management
Neighborhood safety is a non-negotiable. Review crime rates and consider natural disaster risks. A safe location is key to long-term success.
Evaluate:
Local crime statistics and police presence.
Risks from natural disasters, such as floods or earthquakes.
Adequacy of fire and emergency services in the area.
14| Lease Flexibility For Growth
Ensured the lease had options for expansion or subletting if your needs changed. Flexibility is crucial for adapting to unforeseen circumstances.
When reviewing leases:
Check for clauses that allow you to modify or terminate the lease.
Consider the costs and penalties for early termination.
Ensure the lease aligns with your long-term business plans.
Choosing the perfect location for your business is more than just a logistical task—it’s a strategic decision that can define your brand’s identity and impact your long-term success. By considering these factors, you can ensure your location aligns with your goals and positions your business for growth. The journey to finding the ideal storefront may be challenging, but with the right tools and a clear plan, you’ll set your business up for success. Remember: when it comes to retail, location truly is everything.
Check out more FREE 37 Oaks University Helpful Resources that can support your launch and growth journey into a storefront:
Retail Store Conversion Calculator
Storefront Readiness Business Assessment
Storefront Startup + Operations Expense Checklist
More...
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