Choosing the ideal location for your start-up can be a real challenge. We’ve compiled some helpful tips in this article to guide you in making the best decision. The article underscores the significance of carefully selecting a good business location, factors to keep in mind, and suggestions for suitable locations for various types of businesses.
How does the location of your business impact its success?
Your business location plays a key role in its success. It is important to be strategically positioned near your target audience to boost sales.
Key points to keep an eye on
Consider these important factors when selecting the site for your business.
Nearness to potential customers: Make sure your business is located near your clients for effective advertising and increased visibility. This way, they are more likely to remember you when they require your product or service.
Entry Routes: Having a business in a remote area with bad access roads could deter customers from returning. They might choose to go to your competitors. To make amends, you could offer low-cost delivery services to their homes or offices.
Regulations imposed by the government: Your business operations can be influenced by state laws. In certain Nigerian states, alcohol sale and consumption in public are prohibited. Therefore, opening a bar in those regions would be illegal. It’s crucial to adhere to local laws.
Competitors’ Location: Pay close attention to the geographical placement of your competitors and thoroughly investigate the underlying motives behind their chosen location. This scrutiny can furnish valuable intelligence that may assist you in determining the ideal position for your own company.
In addition to the place where your business is situated, discover other tips for achieving success in business.
Here are some businesses and their ideal locations.
Microfinance Bank (MFB)Â – The traders make up the largest portion of MFB’s customer base. This is because there is a constant need for credit facilities to support their working capital or expand their businesses. To effectively reach this specific group, it is essential to tailor advertisements and establish local branches in close proximity to them.
Poultry Breeding Facility: Recent research has revealed that Nigeria’s primary poultry product producers and suppliers are Ogun, Ibadan, Oyo state, Plateau state, and Kano state. If you are planning to establish a large-scale wholesale store for poultry birds or poultry products, it would be wise to consider these regions. Alternatively, you can also participate in the supply chain as a distributor to meet the high demand for poultry and poultry products in major cities.
Automobile Retailers: Most vehicle dealers opt for Lagos as their destination of choice due to its convenient access to seaports. Similarly, cities with a high concentration of affluent entrepreneurs such as Abuja, Kano, and Port Harcourt offer promising opportunities for this business. Here are some practical tips on launching a successful car dealership venture.
Hair Salon: The perfect spot for a Hair salon would be in an urban area where there is a significant population of young men. The abundance of young men in these cities would create a thriving environment for this business.
Salon for Beauty Treatments: A beauty salon is a place where individuals can indulge in various beauty treatments and services. It offers a wide range of services such as haircuts, hairstyling, manicures, pedicures, facials, and massages. At a beauty salon, trained professionals use high-quality products and techniques to enhance the appearance and well-being of their clients. Whether you’re looking for a simple trim or a complete makeover, a beauty salon is the perfect destination to pamper yourself and enhance your natural beauty.
Regions with a high concentration of young women who earn average to high incomes provide a thriving market for beauty and cosmetics enterprises. These regions include the major cities of Abuja, Lagos, and Port Harcourt. Additionally, college campuses offer a significant pool of potential customers. To effectively reach out to your target audience, consider setting up an online store on various social media networks.
Bar: Average-high-income earners residing in major cities constitute the main clientele for alcoholic beverages. However, it is not possible to establish this business in areas where the government imposes restrictions on the public sale or consumption of alcohol.
It should be emphasized that this list is not meant to be an exhaustive compilation. Instead, its primary objective is to offer a structure that enables the entrepreneur to explore further avenues of research.
It is crucial to formulate a solid business plan before diving into any of these industries. Here’s a comprehensive guide on how to construct one that will set you up for success.
The latest study on the “business-friendly environment in Nigeria” is significant, with Gombe state leading the rankings. Entrepreneurs should consider this information and conduct a thorough analysis on the most lucrative business opportunities in this state. We offer numerous resources on the top business ventures to pursue in various states across the nation. Take a look at our guide on the best businesses to start in the capital city.