Of all the factors that influence business success, location is top on the list. Depending on the nature of your side hustle, below are some of the considerations in choosing its location.
- General area
- Complementary Businesses
One may target products or services of a side hustle to high, middle or low-income earners. Choose a location that has a high number of category customers that you want to attract. For example, a posho mill would be best located in a low income populated residential area.
Most urban centres have allocated businesses that sell the same products on a specific street. For example, hardware shops are located in a particular area. Also, search for business premises near your competitors because that is where your customers would frequent. To cope with competition, development and implement an aggressive market strategy.
Businesses can complement each other in terms of location. Customers shopping in one shop for clothes can walk to the neighbouring shop for shoes. Another example is a chemist located next to a medical clinic. If your products or services complement other businesses, then choose a location near them.
The internet has revolutionised the way business is conducted. Nowadays business is operated without the hang-up for the physical premise in a downtown location. Customers can visit a website or Facebook page and either order for your products or request for a service. One example is a Facebook-based professional barber who offers services to customers at the high end of the market in the comfort of their palatial mansions.
People have vacant space such as a room, garage or backyard in their residence that can be used for business. For example, the empty room can become a mini-warehouse for products of the side hustle. Like in China, one’s backyard can be converted into a micro-manufacturing factory.
Provision of services such as hairdressing, barbering or eating places can be located on a busy street. Businesses offering these services would be easily visible along the street compared to being behind some buildings. Businesses that offer professional services are located on other floors of a building because visibility on the ground floor is not their strong marketing factor.
It is important for your customers to have easy access to your business. If you intend to sell foodstuffs, a location with high human traffic would suffice. For example, a food Kiosk near the entrance of a populated estate is best located.
Whichever location one may choose, rent payable would be a decisive factor. Newcomers into side hustles should aim at leasing business premises that are affordable for business sustainability.
On Wednesday, I will post the Lease of Premises and Renovation of Premises. The Side Hustle series continues.