The issue of good site selection is one of the most critical things in making a business successful. Here are nine tips for you to understand and do your site selection effectively. You can also download the full e-book which gives a full explanation below:
- TIP 1 – Understand where you are in the Network Planning Process before considering individual sites. It is no good picking and opening a few random sites, and then trying to fit a Network Strategy around them later on.
- TIP 2 – Think in terms of whom your customers are (and where to find them) as the first way of selecting areas to look for individual sites.
- TIP 3 – Are you able to afford the rents for a high exposure site, or should you be looking for lower exposure, lower rental stores in shopping strips? If you have a concept large enough to be in both, then be aware of the higher costs in shopping centres, as well as the normally reduced tenure and rarely offered option.
- TIP 4 – Do you understand where your concept lies in terms of ‘Impulse vs. Destination’? The higher the product is an ‘impulse’, the more important to be in a high exposure location.
- TIP 5 – It is normally far better to be in a cluster with your competition than out on your own, trying to draw customers to you. Think of being in a cluster as a friend, and on your own as a foe, as the power of the group is far stronger than the individual.
- TIP 6 – Decide on the precinct you feel is most appropriate for you to operate. In large centres, look where that precinct is, and what opportunities are available in it. If it is a general concept, then look to where other general stores are operating, so they are also similar in the ‘Impulse vs. Destination’ ratio.
- TIP 7 – Look for the precincts within the strip where you want your concept to be. Think of the ‘day time vs. night time’ traffic, and be aware of the different rentals the different precincts charge you.
- TIP 8 – Once you have a management approved process, it is extremely important that you are honest to yourself in applying it, and that you keep file records of the decision process, as well as the outcomes, so if you are challenged in the future, you can explain your process.
- TIP 9 – Site Selection is an extremely important part of the business, and as a network increases in size, there is less “low hanging fruit”; it becomes increasing important to understand the process as the decisions become progressively harder.
Do you have any suggestions on site selection? What has worked for you?
About Peter Buckingham
Peter Buckingham is the Managing Director of Spectrum Analysis Australia Pty Ltd, a demographic, mapping and statistical analysis consultancy. Peter is the Go To person as to how and where to establish new sites and territories in Australia. Peter is both a Certified Franchise Executive (CFE) and a Certified Management Consultant (CMC). To contact Peter email firstname.lastname@example.org or visit www.spectrumanalysis.com.au