You thought and now you decided to take that dream of opening your own business out of the drawer. You’ve already researched the market, made a business plan, and sought out investors, but still haven’t defined an important item: the commercial point.
Anyone who decides to undertake in the area of commerce, food or services should keep in mind that the commercial point is fundamental to the success of their business.
No matter how good the service or product offered is, if the point of sale is not accessible to consumers, the company will find it difficult to convert sales.
That is, the wrong choice of location can lead you straight to failure. Therefore, it is necessary to keep in mind three important aspects:
- The product or service that will be worked on and the target audience of the business;
- Who will you work for;
- Where is your audience located?
Also, another point worth mentioning is the importance of starting the business with all registrations and mandatory licenses issued. For that, we have a tip: Be sure to read our content on opening a business, which has valuable information for setting up a sustainable business.
Continue with us and check below the main points about commercial points, which will help you define which one is ideal for you!
What to take into account to define the commercial point?
There is no exact formula to define the best place for your business, but one thing is for sure: this choice must be made according to your strategic plan.
Below we list the decisive details when making a decision about the point of sale:
- Buy or rent company headquarters?
After all, you may find that you have enough capital to buy the site that will house your venture. This is the kind of decision that shouldn’t be made on impulse.
Renting is a less bureaucratic option and also allows you to assess whether you will succeed in that location before putting down roots.
If your activity is digital and you are not going to receive customers, with the growth of your business, you can opt for a commercial room, as the visibility of passers-by is not an indicator that will influence your business.
Important: if you do not intend to work with your own commercial point, you can choose to make your product available in supermarkets and retail stores. Study all the options, make comparisons, and analyze how many points of sale each retailer has in order to measure the capillarity index that your product will have.
- List your options based on line of business
Opening a doctor’s office in the corridor of a mall or a department store in a commercial room are disproportionate options to the core business of the business.
- Analyze the competition
Before choosing the place where you want to carry out your activity, map the local competition, and find out who will be disputing the same customers as you.
That done, analyze what makes your company different from competitors, think about what would make customers migrate from a brand they already know and trust to another that has just been inaugurated.
- Map entrepreneurs with partnership potential
In addition to mapping the competition, also map the local establishments that have the potential to become your partner.
That way, you can refer your customers to your partner, and vice versa. If you intend to open a gym, for example, you can partner with natural product stores, as customers who consume natural products have a high chance of wanting to attend a gym.
This strategy is very valid for attracting new customers, especially at the beginning of the brand’s activities.
- Make a marketing plan
It is important to assess which means of communication and dissemination you should invest in the location.
Evaluate whether for your business model, it makes more sense to focus on digital marketing, very common and very prominent in this era of digital transformation, or traditional marketing with billboards and nearby busdoors, where you can present your brand to the local public.
Also analyze the number of passers-by on the nearby streets and avenues, to find out if it is worth investing in leafleting.
It is worth remembering that the media for dissemination must also be defined according to the core business of your business.
- Don’t forget to also evaluate the accessibility of the place
Your commercial point must be easily accessible to your audience. If your audience can come from far away, look for a place that is served by several bus lines or close to a subway station, for example.
- Compare the options and evaluate the cost x benefit
If you are in doubt between opening a store in the mall or on the street, compare the rent with the billing forecast.
Perhaps renting the mall could be more expensive, but, on the other hand, revenue could be higher due to a large number of visitors and the fact that it is open every day of the week.
- Seek recommendations!
Ask entrepreneurs who own commercial establishments which point they would recommend for you to invest.
Feedback from experienced people is very valuable, as they have the knowledge gained through practice.
- Think about the security of your establishment
Try to find out if the street where you want to open a business is safe, and look for the frequency of robberies and other indicators.
In this sense, the commercial point in a mall is more advantageous, since the crime rate in malls is low compared to the streets.
- Study your audience’s profile!
It is necessary to know their main desires and needs and where they usually go to satisfy them.
Your product or service must be the solution that will satisfy one or more desires or needs of the consumers and, in addition, it must be offered in the place where they will look for it.
After all, no one goes to a popular market to buy a highly luxurious product with a high added value.
- Your business point can also be online.
If you don’t have enough capital to rent a space, you can consider investing in E-commerce. One of the main advantages of e-commerce is accessibility, as you can serve people from different places without having to travel.
Remember, having the ideal location is just one part of ensuring your business’s success. Perhaps the most important thing is that your business is known and recognized by your target audience, because the more value a consumer sees in a company, the more willing he will be to meet you, even if your location is not so accessible.