Setting up an outlet could either be step one or any other subsequent step of your business. Although not all businesses require you to set up a shop or have an office, for some it’s inevitable that you do.
So what do you look out for when setting up an outlet:
Rent is one of the most crucial things when deciding to open up an outlet. When you calculate rent against your business budget, the recommended range is below 30% of that budget. Operating in an expensive outlet will not guarantee you to make more sales. What it will do is balloon your operating cost and thus lower your profits in the long run.
Your shop should be set up where you have those facilities that you require. If you’re operating a salon, you know that you’ll need water, you’ll need electricity for your business to run smoothly. You, therefore, cannot compromise on this as eventually, it will affect your business. Do a survey of the area where you wish to set up and until you’re satisfied that all you need to run your business smoothly is available, then you can set up.
- Availability of other businesses
When opening up an outlet, one thing you need to do is go where other businesses are. Don’t even look for customers, just other businesses. The reason for this is, other businesses cannot be set up in a place where there are no customers. In Economics, it’s said that a consumer is rational, which is to say, a customer will want a little of this and that. When you set up your shop next to other businesses, you capitalize on that hoping that it will pay off eventually.
Setting up where other businesses are, also allows you to have competition that will boost the quality of your goods or services. Being in a place with other businesses will also most likely help you be near suppliers and so you’ll significantly cut down on transport costs.
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