It’s obvious that if your business location is impossible to get to, you are going to have a hard time retaining or finding new customers, but do you know how much an impact your business location really has?
When it comes to the location of a business, retaining existing customers is key. The more your customer retention increases, so does your revenue. The right location can have a big impact on both of these factors. To increase sales and revenue, you should take into account four considerations: proximity to current customers, the environment of your target demographic, opportunities for growth and drawing in new business, and how that location will affect your budget.
Proximity to customers
When considering a new location or reevaluating your existing one, take notice of its proximity to your customers. If your customers and clients are typically wealthy urbanites, choosing a meeting space in a rural or lower class neighborhood would not be ideal. However, choosing an address in a professional business center in the heart of a big city would be easier for them to get to, and it would present the image you want to retain that customer base.
Another important thing to consider is whether your location is in the right environment for your demographic. This is crucial not only for customer retention, but also for expanding your business’s reach. Ask yourself what other businesses are close by and if they draw in a similar customer following. If so, it could potentially help your business. For example, if you were opening up a coffee shop, you might consider putting it close to a bookstore since they generally share the same demographic. The result is a mutually beneficial relationship between nearby businesses.
With increased revenue being your end goal, establishing a global presence by laying anchor in international locations can significantly affect your growth potential. In fact, businesses that expand overseas actually report higher sales and revenue than those that are limited to domestic markets. Before making the leap to just any location, however, create a strategy and perform market research to determine which international location is likely to have the most customers within your demographic. You could also research similar businesses performance in other countries to find which one is most likely to offer the highest sales potential.
This last one shouldn’t surprise you. While it is true that, in many cases, you have to spend money to make money, it is not necessary to concentrate all of your budget on an expensive business location. There are a lot of ways to find affordable office space in your desired location, including taking over another business’s lease or investing in a fixer-upper. Location is important, and the quality of that space is central to making a great impression, but you don’t need to squander your budget on an overpriced upscale meeting space, especially if you are trying maximize revenue.
Your business location has a great impact on your ability to retain customers and increase sales, so as you consider the value of your current or future office space, make an informed decision by considering these four factors.
Catering to your customer’s needs is the best way to increase your business’s revenue, so they should be your top consideration when you’re choosing a business location. Always look at the potential for continued sales and possible growth by looking at the patterns formed by other businesses in that area and create a map of your strongest demographic—and remember that it is possible to reduce other operating costs while you secure both local and international markets.
Find the perfect location for your business with affordable conference room rentals from Davinci.