Location strategy for a business plan can be a complex issue. You may have an exceptional business idea and a solid roadmap in your head for how to execute it, but one big lingering question: where? Whether you have a concept that is not location specific or you're trying to determine whether your business will perform better with a physical location or distribution point in another city, a sound location strategy is a vital component of a successful plan. You need to do in-depth research of market metrics and comparative analysis for different geographies to determine the right answer – and, more often than not, there IS a right answer. The situation depends and is always business-specific, but location strategy research should not be taken lightly. Consider the following:
Let's say you have an ammunition company and you supply stores all over the U.S. from a warehouse in Washington state. You could significantly reduce your shipping costs if you had a warehouse closer to the FedEx hub in Memphis, but is changing the venue worthwhile? Only research will tell.
Or perhaps you want to start a comic book shop in Michigan. You can get a great storefront outside Detroit for a modest rental cost, or a spendier site in Ann Arbor. The one in Detroit has fewer competitors around it, but the one in Ann Arbor has a higher disposable income amongst the people living nearby. What can you do?
In both of these hypotheticals, you need advanced comparative market research to answer the question definitively. Specialized market data from paid resources can help make the issue clearer, but more people don't know where to look or want to avoid the cost of a database subscription. And that's okay – there's another option. At MasterPlans, we have been answering questions like this for the past 10 years. As professional business plan writers capable of preparing documents and studies for investors, banks, and venture capital firms, we've got your covered. Check out our website (www.masterplans.com) or give us a call today at (877) 453-2011 to learn more about how we can help you.
