Choosing a Great
Business Location 3

Evaluate Competition
Most small business operators think that they are unique, and some are. However, the majority are not. Therefore, competition is a significant factor. One must determine competition and measure its importance. You should know the competitors' sales, pricing, service-level, items most often purchased, and other elements important to individual operators. If you do not know answers to the above, how can you determine your own success?

Understand Visibility and Exposure
Visibility is a location's ability to be seen; exposure is being seen and recognized over a long period of time. Visibility can create opportunities for impulse eating, while exposure influences patterns and decision making over time. Visibility is critical to the fast food industry, while it is important to restaurants.

Realistically Estimate Potential Sales
Historically, sales of a prospective restaurant have been estimated on the back of an envelope or on a napkin. Estimating sales is a difficult process. Conversely, it can be simplified to provide a guideline to maximize opportunity and avoid mistakes. A little money and an upfront effort can avoid a major loss of thousands or even hundreds of thousands of dollars. It pays to make the effort.

Evaluate Location Economics
Please notice that this is the last principle. Unless all of the other principles are adequately met, the cost of a location is not relevant. A good deal on a location may be a bad deal in the long run. Remember, we most often get only what we pay for. Select good locations and negotiate hard for a fair price.

Evaluating the market and selecting the right location is as important as creating the menu or designing the restaurant. A bad location rarely is overcome with good food.