When choosing a business location to establish a business, you should pay attention to a number of things including assessing the competitive situation in the area. Considering traffic conditions, legal regulations, etc.
Target customers when choosing a business location
Customers are an important factor in determining the sales of a business location. So before choosing a location to establish a business location, you need to research your target customers. They are the people who are most likely to choose to buy your products/services. Instead of buying products/services from other businesses (your competitors).
After identifying your target customers, you need to research the characteristics of each customer group. Including age, gender, where they live, work or frequent, their interests and habits.
Financial capacity
Investors need to determine the cost of buying or renting premises, the cost of paying employees, investing in necessary equipment, etc. Also, to determine whether their financial capacity is sufficient to cover and maintain business at the new location. If the cost exceeds the budget, it may put pressure on the business operations of other stores in the enterprise because they have to compensate for losses.
In addition, each location will have a different price. Suppose you do not plan a budget for setting up a new business location (or any other activities such as establishing a business, establishing a branch, etc.). When you choose a favorite location but cannot afford it. In that case, it will be a waste of effort and time to find that location. Therefore, you should determine your financial capacity first and then look for locations within the price range that you can afford.
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Competitors in the area of business location
The market is like a battlefield, you should survey the stores that sell the same products. As you to consider the competitive situation of the area before deciding to open a store in that area. Most customers tend to go to places where there are many stores that sell the same products so that they can easily choose.
Therefore, opening a store on a street with many products similar to yours can help you increase your sales opportunities. For example, if you run a second-hand store, you can go to a second-hand shopping district to set up a store there.
Location and traffic around the location
Regarding location, you should choose prominent, accessible locations to attract customers. Such as busy neighborhoods, major roads, and main intersections. However, the rental price of premises in such prime locations is quite high. So you should carefully consider the maintenance costs and the profits you can earn before deciding to set up a business there.
If you are in the food and fresh food business, you should consider another aspect. Which is to locate the store near the supplier to shorten the transportation time, keep the goods fresh, and reduce damage.
In addition, a convenient parking location is also a plus point of the store in the minds of customers. Therefore, you also need to pay attention to choosing an area with a spacious frontage. Further, customers can conveniently park their vehicles when visiting the store.
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Security situation
The security situation around the business location is also very important. Because it has a direct impact on protecting property and ensuring the safety of employees and customers. Therefore, before deciding to locate a new store there. You need to carefully research the security situation, crime rate, distance between the store and the police station, … To minimize the risk of property loss as well as keep the store, employees and customers safe.
Legal regulations on establishing business locations
After selecting a suitable location, the enterprise must complete the procedures for establishing a business location to notify the Business Registration Authority. In accordance with the provisions of the Enterprise Law 2020.
For example: ABC Company has its headquarters in Hanoi and a number of stores in Ho Chi Minh City. The stores in Ho Chi Minh City are business locations and ABC Company must complete the procedures for registering the establishment of business locations for those stores in accordance with the provisions of law.
Specifically, the enterprise prepares documents and sends them to the Business Registration Office where the business location is located. Then, if the documents are valid, the business will have the Business Registration Office update information about the business location in the National Database. And issue a Business Location Registration Certificate.
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In conclusion, to complete the process of establishing a business location. The enterprise needs to complete the annual business license tax payment for the business location and hang a signboard at the registered business location.