If you are writing a business plan, you might be wondering with the importance of location strategy in business actually is. The answer you probably are not looking for is: it depends. If you are starting a brick and mortar location, then naturally opening in a busy location will be critical to your success, although that is not always true. On the flip side, if you are starting a specialty shop, than it is more likely that your niche customers will find you and that you need a less visible location. If you are starting a tech business or online company, location is even less important, unless proximity to tech hubs like Silicon Valley matters. No matter what you decide, discussing your location is a critical part of developing a successful business plan. When discussing your location, then, you should include the following points:
• Why you selected the location
• What are the demographics in the area (if applicable)
• What it will cost to rent/purchase/build out the space
• What the competition is like nearby
These are points that an investor or lender will want to see that you have clearly addressed in your business plan. Again, not every point applies to every business, and in the case of the growing number of online and ecommerce businesses, location is perhaps not relevant at all, which means that you can omit it from your business plan altogether if you so choose. If you would like more help with your location strategy for a business—or developing your business plan to secure a loan or funding—call MasterPlans. We are the industry leaders in business plan writing, and have helped thousands of entrepreneurs develop the location strategy, and business plan, they needed to get their dream business off the ground. Call us today at 877-453-2011.
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