While small to medium enterprises (SMEs) commonly start off as online stores nowadays—mostly to save on rent and utility costs—many business owners still wish to someday establish a physical branch that their customers can actually visit. If you’re among those entrepreneurs, then you’d find that one of the initial hurdles of setting up your first physical branch is finding the right location. This is critically important because no matter how excellent your products or services are, they’re not going to generate you any profits if customers aren’t able to find or access your store.

If you’re planning to open your business’s first physical branch anytime soon, here are some tips on how to find a great location for it:

1. Determine Your Target Market First

Before you start looking for business locations, make sure you’re clear on who your target market is first. While you may be able to entice your existing online customers to visit, it’s likely that you’re going to be catering to all-new customers in your brand-new branch. Thus, by knowing who you want as customers, you can more easily narrow down potential locations.

For this step, you can survey your current pool of customers or research more about your industry’s customer demographic. For example, if you’re a business selling books, stationery, and other school supplies, then your branch should ideally be somewhere near a school because students will be your primary market.

Think of your branding as well and find a location that matches it. For instance, if you’re selling high-end shoes and clothing, then you may not exactly fit in if your location is along a street full of thrift stores. Rather, being in a shopping district where other high-end goods are sold would be the better choice.

2. Evaluate the Costs

Setting up a physical store is a costly undertaking for many SMEs, considering one has to account for rent, utilities, interior design, relocation of supplies, and staff hiring, among others. Thus, many choose to take out a business banking loan to finance their first physical branch. Maya Flexi Loan is a particularly convenient way to obtain funding to build your dream store through its quick loan approvals and low borrowing fees.

That being said, not having enough knowledge of the costs of running a physical store can lead to bad financial decisions and deplete your cash reserves faster. Hence, make sure to evaluate the costs that come with owning and operating a branch. Beyond monthly rent and bills, take into account other costs as well, such as taxes, maintenance or repairs, and insurance.

3. Prioritize Accessibility and Visibility

Another key factor to consider when finding a business location is its accessibility and visibility to your customers. You’d want your physical store to be located in an area that anyone can easily visit via public transportation, car, or even by foot. Accessibility invites more traffic, which can bring in more sales and attract potential customers who may be passing by. This is crucial for your suppliers as well, so they can efficiently deliver supplies to your branch without having to worry about confusing directions or roads that aren’t wide enough to fit their vehicles.

The visibility of your branch also makes marketing efforts much easier. If your small restaurant is beside a busy road, for instance, then you can put up a sign outdoors that shows your menu or deals of the day with full confidence that it will be seen by customers.

4. Check for Competition

Before you decide on the location, it’s important to conduct a survey first to see if there is any competition already in the area. Perhaps there are already too many stores offering the same products as you do, in which case it might be difficult to make your business stand out. On the other hand, this particular situation can also lead to healthy competition and may even boost traffic as more people come to associate the area with the product or service you and your competitors are offering.

Another thing you may also consider is a location where there are complementary businesses around. An example would be bookstores being near coffee shops. For many book lovers, reading while enjoying a cup of coffee is an appealing prospect.

5. Choose a Safe Location

Safety is an important concern when choosing a business location. If you put up shop somewhere remote or known to be dangerous, then customers may be discouraged to visit your branch. Hence, find an area that already has other establishments in it—meaning there’s always going to be foot traffic—and doesn’t have a history of crime incidents. This is especially important if your business will operate at night as well, as you’d want your customers and employees to feel safe.

6. Consider Customer Parking

Having available parking spaces for your customers may or may not be a necessity, depending on the kind of business you run. If your business invites people to stay for a considerable amount of time, such as a restaurant or a spa, then parking spaces may offer additional convenience. Similarly, think of whether you or your employees may need parking space as well.

Opening your first physical branch is a huge SME milestone, so make sure it goes smoothly by choosing the perfect location. While there are many options available, going through the tips discussed in this article can help narrow them down and guide you in picking the location that best suits your business. Good luck!