It's time to put location at the top of your to-do list. If you're preparing to open a food or retail business with a storefront, putting your business in the proper location might be the single most important thing you do at startup. Of course you need a winning product, too, but how will anyone know about that product unless you get them through the door?

"In the brick-and-mortar retail world, it's said that the three most important decisions [you'll make] are location, location and location," affirms Vincent White, a Realtor® and small business consultant. "Careful determination of new sites is critical for most retail and consumer business opportunties

Check Your Demographics

Getting an accurate a demographic overview of the area you're looking at-age, income, households, etc. can make or brewak your dream. Making these determinations can be as simple or as complex as you make it. There are, many sophisticated location analysis tools available that include traffic pattern information, demographic and lifestyle data, and competitive analyses. Vincent, states that I advise my clients looking to add a store to a particular market, to ask the following: What's the optimum level of traffic as it relates to the specific targeted trade area? What is the overall type of traffic? It’s very important to “Do you diligence” advises White.

In addition, you should look at neighborhood traffic generators, such as other retailers that draw people to the area, industrial or office parks, schools, colleges and hospital complexes. You'll also want to look at both highway and foot traffic.

Look Your Competitors in the Eye

Many experts agree, that the answer to where you should locate is more straight forward than many entrepreneurs make it. "Quite simply, the best place to be is as close to your biggest competitor as you can be," says White behavioral researchers have determined that by being in close proximity to your competitors, you can benefit from their marketing efforts. Think about where you shop: Kohls, Target, and Boscovs normally located all within a walking distance of one another. However one should remember the Principle of Competition [appraisal theory] which states that excessive profits in any line of business will tend to breed competition that, in turn, tends to destroy profits.

Your competitors chose their locations based on the ideal demographics of a particular area, says Kahn. In many cases, they've also devoted large portions of their advertising budget toward driving traffic to their locations. "Why spend the money when they've already [spent it] for you?" asks White. "It's that easy."

What's more, being located near your competition can be a boon to business, provided you're confident enough in your product to outsell your competitors. "Competition is good," concurs White. Just look at Concord, Chrisitina, and King of Prussia Malls. "It makes the retailer or the restaurant better-competition breeds more business, more traffic, and that's a positive. If you think your business is that good than go right up against the competition, says White.

Of course, it's still a good idea to make your own evaluations of a particular property, even if your competitors seem to be thriving in the area. Staying ahead of the game in this regard will help your business grow and expand.

Need Professional Help?

But your job isn't done even when you think you've found a good spot for your business. Negotiating a lease that works for you and your business is just as important as the location itself. It's very important that you have a good lawyer who can negotiate your lease-that's another cost. Your attorney can help you look at things like the term of the lease, build-out allowance and the condition of the property.

He or she can also help you talk to the landlord so you ask the right questions. Interview the landlord as hard as you look for the location. There are a lot of unscrupulous [ones] out there-they tend to have a 'me' mentality."

Making use of a local real estate professional who understands your customers as well as you do is also a great idea. Depending on whether you're opening a food business or a retail store, you'll want to discuss things like the type of merchandise your target customers buy or the sort of food they like to eat. Find the real estate professional who knows his or her city backward and forward," advises White.

A business plan can really help with site location. When looking for a location," advises White. "Know what your strategic objectives are."

By Vincent M. White, Broker/Owner (Provest Realty Associates Inc)