It is an old adage in real estate and marketing. Location is the 1st, 2nd and 3rd most important thing in a purchase or business decision. It still holds true.
Now might just be great time to open a shop, expand a shop, move a shop or add a location to your empire. Money is cheap. Spaces are plentiful. Used equipment is everywhere. We do not wish misfortune on others, but the current challenges in the marketplace also create opportunities for those ready to make a move.
When scouting a location for a barbershop or hair salon consider the following tips:
1. Who are your best customers? Where do they live, work and play? What are their traffic patterns? What other businesses do they patronize? What times of day or days of the week do they do business with you? Choose locations that allow them to do business with you easily.
2. Who are your target customers? What customers do you not now have that you wish to build business with? Same questions as above in point one. Might the right new location allow you to tap into an entirely new customer demographic?
3. Think about now and later. Can you move in right away? Do you have what you need for now? Can the space support you as you grow? Parking supply, water quality and access, and the nature of other tenants in the shopping strip or on the block all come into play. It is not just about today. Think long term.
4. Do the numbers work? Your rent and advertising combined should add up to about 10% of your overall gross revenue. The more you pay for rent the less you should need to spend on advertising… and vice versa. A lesser location will require a higher ad spend to build traffic. Use this formula for supporting good decisions.
5. Open for as little as possible. Can you find a shuttered shop that is already plumbed and wired for haircutting? Can you take over a space from an out-of-business hair business that has decent used furnishings in place? Get the door unlocked and improve, upgrade and spend as you go with cash on hand. Cheap money from low interest rates is still money with a cost. Keep costs low and spend as you grow.
There can be a lot more to think about, but this will get you started. Many of today’s biggest and most prosperous companies and brands were launched during the great depression. Challenging times still do represent opportunity. Is this the opportunity you have been waiting for?
How can I help you be a $100,000 Haircutter and more?
Let’s talk.
Ivan
