How To Nail Your Store’s Site Selection And Set Yourself Up For Success

Everyone’s heard the phrase “location, location, location.”

But most people don’t really understand how to find the perfect site for their store.

Simply put, the location for your business can make or break you. Yet, surprisingly, many business owners fail to pick the right spot. They forget to consider the store’s layout, nearby retail, and the huge role accessibility and parking play in attracting customers. Consequently, they set themselves up for fewer customers and lower sales.

This situation is often avoidable if you know what to look for.

As the founder of superfood cafe Kale Me Crazy and froyo chain Yogli Mogli, I’ve opened more than 40 locations across the United States. Through years of trial and error, which turned into years of seasoned experience, I’ve figured out how to nail site selection. And whether you’re a franchisee opening your first store or a serial entrepreneur looking for your next site, the key is understanding your customer base and identifying your market.

Once you establish your target demographic, you’ll be well on your way to finding the right spot and laying the groundwork for your business to thrive.

Here’s what to keep in mind when it comes to location:

Identify your market.

First and foremost, I strive to understand my target audience. Without customers, any business is in serious trouble.

You need to identify your market and determine your clientele. Where do they live? What stores do they already shop in? Do research to ascertain how much disposable income they have and how well that number meshes with what you’re selling.

Once you have a grasp of who your future customers are, ask yourself where your store should be.

Your answer to these questions depends on who your customers are and what kind of business you have. Some concepts do better in high-traffic areas with lots of pedestrians, while others excel in more suburban shopping centers. If you’re a caterer, for example, you’ll probably want to target an area with a heavy density of offices.

After you identify the demographic and area you want to target, you can narrow your search to a specific location.

Consider size and layout.

There are many considerations when finding the perfect ambiance for your shop.

For most, the percentage of sales put towards rent needs to make sense for your concept (you’re looking to spend somewhere between 5–10% gross sales). But you’re also looking for a sweet spot with the price per square foot — when renting or buying.

The first step to ensure you’ve selected the right site is to understand the approximate size you’ll need for your concept. Employees will need to have plenty of space to operate without impeding workflow. And you need to make sure your clients feel comfortable in the location. In this case, bigger is not always better.

After identifying the right size, you need to carefully consider your store’s layout and interior design. Layout determines the energy and ambiance you generate in a space, and it has a profound influence on how customers feel in your shop.

I call some layouts “landlord-friendly” because they’re shaped like a bowling alley: super narrow and deep. This type of design maximizes profit for the landlord but is terrible for owners. In fact, I’ve seen businesses close just because they had the wrong layout — not enough window space, too narrow.

The more open your space is, the better it feels. Storefront and window space contribute to feelings of energy and openness, so be picky about your layout and know what kind of customer flow you want to create.

Don’t forget about accessibility.

It’s easy to focus on the inside of your store and overlook the exterior. But forgetting to consider factors like parking and traffic can seriously hurt your business.

You want to make sure customers can easily access your store. If you’re located in a suburb, for example, you must have ample and convenient parking. A clientele of stay-at-home moms with kids simply won’t come to your store if it’s difficult or stressful to get there.

When it comes to accessibility (or lack thereof), I’ve seen some crazy things. Some shopping centers require you to make a U-turn to get there, lack a traffic light at the entrance, or are located on a busy highway. These things may seem minor, but they make people think twice before they come to shop at your store.

Removing these perceived barriers will encourage more people to come to you.

Pay attention to the nearby retailers near your location.

The benefit of locating your store near similar retailers cannot be underestimated.

Actually, it can make all the difference. If you’re in a spot your demographic doesn’t already frequent, it’s much harder to get people through your doors.

That’s why you need to ascertain what businesses you want to be in close proximity to.

Some companies greatly benefit from being near a school, hospital, or gym. The increased foot traffic, as well as specific age and income-level demographics, can help potential customers discover your business. When I look for a Kale Me Crazy location, I refer to my list of complementary businesses I want to have within a one-mile radius because clientele nicely overlaps with theirs.

As an entrepreneur looking to open a brick-and-mortar storefront, site location should be one of your biggest priorities. Where you open will affect your customer base, your bottom line, and ultimately your success.

If you open the right concept at the right location with the right operator it will thrive!