How to choose a location for your business

For many small businesses, especially retailers, your location really matters. For those companies that rely on window shoppers and attracting customers from street level, choosing the right location is especially important.

How to choose a location for your business

Start by narrowing your focus using census data. This’ll help you evaluate how well you could potentially profit and attract your target market in the area.

Census data is collected every five years by Statistics Canada and gives statistics on families and households, income and earnings, population and dwelling counts, age and gender. Community profiles are also available all over Canada, which break down the population into age categories and gender; common-law and marital status characteristics; family and household characteristics including income; languages and mobility status; as well as education statistics (as detailed as the major field of study); labour force activity; occupations; industries and modes of transportation. This information can be incredibly valuable! Start your search at the Statistics Canada Website.

Aside from these demographic factors, assess the level of competition in your potential community, as well as the neighbourhood traffic generators that may also draw traffic into the area. These include things like big box stores, gas stations, schools, colleges or grocery stores. Depending on the type of storefront you’ll be opening, also consider the amount of vehicle and foot traffic. Consider the location’s renting, leasing or buying options and figure out the right one for you. Compare your community research to your primary market research and secondary market research so you can match customer characteristics to the communities you’re considering. It seems like a lot to take in, but it’s very important.

How do you know if you’ve chosen the right business location?

Although there are many ways to access the suitability of potential locations for your business, at GoForth Intstitute we believe there are really seven vital deciding location factors to consider. Check back next week when we break down the top seven elements of a good business location!