The Impact of Location on Business Success and Growth

Here’s a picture for you: you have a business that’s just opened up in the middle of nowhere; tucked away in an alley, no bus or train stations near, no parking, and not even close to anything resembling a town center.

Then you have another business that’s also just opened up and does the same exact thing as the previous one, but this one is close to a main road, there’s plenty of parking, it’s on a street that has a lot of foot traffic, and there’s a bus stop nearby.

Now, which of these two businesses do you think is more likely to succeed? It’s a pretty safe bet to say that the second one is set up for success, and the first one… Let’s just say it’s not.

But location isn’t just about customers. Do you think your employees would be happy commuting to a random place that’s hard to get to? Or that your supplier will have an easy time unloading the products for you?

Location impacts everything, and where you set up shop can make or break your business.

Visibility and Customer Access

A lot of businesses heavily depend on foot traffic, especially when they’re new and aren’t established yet, and it makes perfect sense – the more people that see your business, the more likely you are to have customers.

Take a retail shop, for example. If they’re on a busy street, they’ll have a lot more walk-ins than they would in a location that’s hard to see and access. And speaking of accessibility, that’s just as important as visibility.

You could be on the busiest street in the world, but if there’s no parking around or if you can’t get to it by public transport, you’re in a pickle, especially if you have a service-based business, like a beauty salon.

Convenience is a big deal, and if your business is hard to reach, your customers will just go elsewhere.

It can be hard to find a location that has everything, but if you’re somewhere with a growing real estate market, like Calgary, for instance, you can just browse through Calgary commercial property listings to see what the city offers.

3 Ways of Engaging with the Local Community

Loyal customers and positive reviews (whether they’re online or just word-of-mouth) have a very big, very positive impact on business.

Of course, it depends on your service and/or product, but another way to reach out to your customers and build relationships with them is to engage with your local community. You can sponsor events and raffles or donate your products.

Not only will your customers get to see your business as one that loves to give back to the community; you’ll also have the chance to promote your business to more people.

One – Building Relationships Locally

Businesses that have strong ties within their communities are usually thriving. Apart from participating in events and charities, another way to build relationships is to collaborate with other local businesses.

For example, if you own a café, you can partner with a local bakery for a special event and the result is a relationship that benefits both sides and helps both businesses get exposure.

Two – Understanding Local Culture

If you want an actual connection, you need to understand the culture and the demographics. This means that your products, services, and marketing must align with the kind of people that surround you.

For instance, if you have a restaurant in a culturally diverse neighborhood, don’t create a menu that offers just burgers and fries. You have to embrace local culture so that your food feels familiar and relevant to everyone.

This will make your customers feel more comfortable, plus they’ll be more likely to return to your restaurant and promote you.

Three – Supporting the Local Economy

Local businesses are very important in terms of the local economy, and you’ll want to support it. How do you do that? Easy – hire local employees, get local vendors to be your suppliers, and reinvest in the area. In return, you’ll get loyal customers that’ll keep coming back to your establishment.

This kind of relationship between a business and its community will create positive economic growth, and you’ll seem more trustworthy to current and future customers.

Conclusion

If you think location is just a spot on the map – think again. The right place can mean everything and it can take your business from barely getting by to being successful.

In the right location, your customers will be able to easily find you; they’ll feel comfortable coming back.

But it’s not even just about the customers because a local business can become a part of the neighborhood’s fabric, and once that happens, everyone will know about it and everyone will support it.