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Moving towards a post-pandemic world, foot traffic in commercial areas is slowly returning to its pre-pandemic levels.
Looking back at the years prior, there was an increase in the number of small businesses that started in order thrive during the pandemic. At its peak in 2020, there were over 916,163 businesses registered under DTI in which about 91% of them are new businesses. With more economic activity and higher foot traffic in public spaces this 2022, now is the opportunity to expand and open a brick & mortar store for their business.
Selecting a location for your business can be a determining factor in its success. With the right business location, you will be able to attract more customers, optimize your business processes, and increase your market impact. Business owners need to take in factors such as area accessibility, costs, infrastructure, and competition.
Here’s an overview of the factors that business owners need to consider when selecting their business location.
Accessibility and Proximity to Target Market
Businesses that are located in a highly visible and accessible area such as commercial or mixed-use developments along main thoroughfares are more likely to be visited by consumers. These locations have high foot traffic, making it an easily accessible site for your businesses’ target consumers, employees, and deliveries.
The best practice to do beforehand is to analyze the area’s demographics to identify if the community fits your businesses target market.
Another factor you need to consider would be how much you are willing to invest in the physical location of your business. Aside from property rent, there are other costs such as utilities, taxes, maintenance, and security that need to be considered beforehand. When selecting a location for your business, it is best to know if there are any inclusions in the property rent, in order for your business to balance its costs when finally selecting a location.
When selecting a property for your business, it is important to note that each building varies. Some older buildings may not have provision for internet, and modern technologies. In order to ensure a smooth business operation, it is crucial to consider that the location of your business has the basic amenities such as power and water supply, restrooms, and parking.
Locating your business in an area that has your competitor’s presence has its advantages and disadvantages. The advantage of a location near your competitor shows that there is a market in that area that you can also serve. This can be beneficial for food and retail businesses as it adds to the variety of shops in the area. However, if the area is saturated by your competitor, you must identify an area where there is an underserved market that your business can cater to.
Need help in finding the right location for your business? KMC Savills’ Transactions & Advisory team helps determine your business goals to match you with a property that fits your business.
Learn more about our Transactions & Advisory services today! For inquiries and more information, call us at (+63) 2-8403-5519 or send an email to [email protected].