Like with any investment, location plays a fundamental role in whether or not a franchisee will find their new business venture successful and enjoyable. It might sound simple, however many business owners get location selection wrong, which puts them behind the eight ball before they even start trading. Chris Ferguson, retail manager at Ferguson Plarre Bakehouses shares some helpful tips.

While itÕs often tempting to jump on the first opportunity, try to temper your eagerness to get trading and take the time to do your homework.

When I explore new locations for Ferguson Plarre franchisees, I abide by the following philosophy: if we wouldnÕt do business there, then we wonÕt recommend it to our franchisees. We are so confident in the locations we select, we take on the head lease. Work with your franchisor so youÕre both confident in the location before signing on the bottom line.

Here are some tips to guide you:

1. SWOT: Always, always, always do a SWOT analysis on the location with your franchisor. The SWOT will help you understand the environment your new business will operate in. It will assist in navigating your business towards its strengths and opportunities while identifying weaknesses and threats. It’s always important to take the time to work on your business and not always in it so it pays to refer to the analysis regularly to keep your business on track. To see how you can complete your own SWOT analysis visit

   www.business.vic.gov.au

2. Rent vs revenue: Always complete a thorough analysis of the expected turnover vs the rent. Your rent should be no more than 10 percent of your revenue.
3. Customer convenience: No matter how good your product is, convenience is king in today’s retail environment. Consider whether the site is highly visible, easily accessible and whether there is sufficient car parking nearby.
4. Benefit from the slip stream: Consider other anchor businesses such as major supermarkets, banks, post offices or butchers. Being located near these sorts of businesses provides a huge opportunity to capture existing traffic. Like a high performing team, surround your business with other high performers.
5. Think business: Research local demographics and community sensibilities — does the local fabric reflect your target market? Remember, you’re looking for a location for your business, not somewhere to live or hang out in, so be critical.