Why is selecting the location for a new outlet or branch so important in ensuring business success? Simply put, choosing the right location is crucial to make sure customers can easily access your business.

Many business owners underestimate the importance of choosing the right location. This can be a risky mistake or even backfire, especially when a large investment has already been made without proper calculations. If not done carefully, the business might not last long. Here are some common issues caused by choosing the wrong location:

• High operational costs. Less strategic locations often require more spending to attract customers, like extra marketing or aggressive promotions.
• Longer return on investment. A poor location can delay ROI because customer traffic does not meet expectations.
• Missed sales targets. If the location is too quiet or far from the target audience, it will be hard to achieve sales goals.
• Thin profit margins due to unexpected costs. Poor location choices can lead to additional unplanned costs, such as high rent, bigger renovations, or extra marketing expenses.
• Quicker business closure. Mistakes in choosing a location can lead to the business closing down faster if sales cannot cover operational costs.

To avoid these problems, Clove can help business owners through a Pinpoint Study to determine the best possible new location before making expansion decisions. The Pinpoint Study has been used by various industries such as Food and Beverage, Restaurants, Skincare & Healthcare, Building Materials, and more.

Before deciding to open a branch in a particular location, it’s important to evaluate the proposed site by considering the following parameters:

1. Traffic density; How often do people pass by? Is the area busy with traffic?
2. Nearby points of interest; Are there consumer attractions nearby, such as malls, offices, or schools?
3. Consumer profile suitability; Do the demographics of the people near the location match your target audience?

In addition to these key factors, business owners should also pay attention to other supporting aspects, such as:

1. Location accessibility; Is it easy to reach the location, whether by private vehicle or public transport?
2. Competitor presence; How many competitors offering similar products or services are nearby?
3. Consumer habits; What are the shopping habits and behaviors of your target audience in the area?

Through the Pinpoint Study, Clove can provide business owners with key insights, including:

• Traffic information around the location
• Profile of people passing by
• Reasons why people visit the area
• What people remember when passing the location
• Information on public facilities or points of interest around the target location
• Density information of the surrounding area

Conclusion

With the Pinpoint Study, business owners will gain clearer insights and comprehensive data, allowing them to open new branches with more confidence and better planning. Don’t let location be a barrier to your business’s success. Evaluate the location thoroughly before expanding, and make sure it supports the future growth of your business.