For your distribution business, having a good location is just as important as your products, employees and marketing strategy; as a matter of fact, it is one of the most important factors for the profitability of your business. Ultimately, the place you choose to situate your business could determine whether or not your business makes it.

So, in this article I’ve prepared 7 tips you should follow to help you decide on the right location for your distributorship business.

7 tips for choosing location for your distributorship business

  1. Visibility.

Make sure that the shop you want to acquire for your business is visible from major roads and can easily be located. Visibility does not mean that you have to be right in the heart of activities. Situating your distribution business just a short distance away from a shopping mall and around other sub-distributors will mean that you can enjoy the customer traffic from these other businesses.


  1. Competition.

If you’ve noticed; fast food chains usually locate their business close to each other because of human traffic. So sometimes, seeing where your competitors are located could actually help to give you a good guage about the feasibility of doing business in the area. It will then be up to you to come up with ways to engineer your business to draw more customers to your store.


  1. Availability of amenities.

The availability of amenities¬† is vital when deciding on a suitable location for your distribution business. You want to make sure that wherever your business will be located can be readily accessible to human traffic and customers, otherwise it’s a no – no. Accessibility is very important. And this is because your business may be visible and implementing great marketing strategies; but it is also critical that your prospective customers/customers have easy access to it. Try to locate it as close as possible to major bus stops so people can get to your location with ease. Or even closer to big markets and major shopping complexes is a plus.

Ensure that the environment should have power supply, water and other basic amenities. The reason for this is that; places that have good basic amenities are usually more populated than those without them.


  1. Cost of rent

Now I’m not saying you should get a shop front in a cheap environment; not necessarily. The point is that you want to spend money according to the value you’ll be getting from that particular location, so take note. Besides the base rent, consider all the costs involved when choosing a location for your business. Does it cover the cost of building maintenance? Does it cover the costs of utilities and security? If the location is remote, you may also want to factor in the marketing costs it will take to enable customers to find you. Also, you have to take into consideration other modifications such as painting, redecorating and renovation which will also cost you added expenses.


  1. Personal factors.

Aside from all these above mentioned factors, other factors such as relating to your personal disposition need to be put into consideration when deciding on the perfect location for your business. If you plan to work in your store, think about the time it will take you to get there from home. If you’ll spend most of your time travelling to and fro work, the commute may overshadow the excitement of being your own boss, especially if you stay in a city such as Lagos.

Also, you need to pay attention to the restrictions that may be placed on a tenant by a Landlord, management company or community which could adversely affect your business.


  1. Your target market.

Of course by now, you must have clearly defined who your target customers are knowing too well that it’s not possible to sell to everyone.

Find out if the majority of the human traffic in that area falls under your targeted customer base. Leverage this information to get the perfect location for your business. By figuring this out, you will be able to know how well your business will thrive in that environment.


  1. Good communication

Good communication is a critical factor to be considered for choosing location for your business. Imagine if your customers always find it hard to reach you because of poor reception; that’s bad for business and should be prevented even before you get a place. Imagine the number of meaningful connections and business openings you could miss because of something that fragile.

Such places should be fully avoided and crossed from your list.


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