What came first? The chicken? Or the egg? It’s a little that way when it comes to business too. Do you start with a business idea? Or do you look at the market and see what would work well? For many businesses, it’s the first option. It may be a dream to own a restaurant or a dance studio, so that is the venture they embark on. For many people, this works just fine, as their passion and drive make them successful business owners and other factors such as skill, positioning, competition and luck may contribute in a positive manner.
However, what if you flipped the coin and approached it from the alternate angle? What if you wanted your own business, and instead of going with your heart, went with your head?
This is where certain business owners begin to shine. They begin by assessing the market. They scope the area they would like to place their business and they ask themselves, “what do the people in this area need? What are they lacking?”. Here are some key questions to ask yourself when in the initial planning stages of creating a business that may attribute to future success:
- Who lives in the area? How old are
they? Are they mostly single people or families? What is the average income?
This will help to determine product line, pricing options and services that you offer. As you may offer families a bulk discount on your product or service as opposed to affluent single professionals.
- What businesses already exist in
the area? If you are looking at an industry, how flooded is this industry
already? Or are there gaps in the market that you could tap into?
You’d like to open a café but there are already 2 on every corner, however, after 2 pm, the neighbourhood falls silent and a little tapas bar could prove very popular!
- What do people need in this
Similar to point #2, where you’ve assessed what businesses already exist, have a good think about what opportunities don’t yet exist, that would make residents lives easier.
Maybe the local grocery store is a 20-minute drive away and during peak hour is a nightmare to find a parking spot. So, why not open a small supermarket and deli on a residential corner? It may be a little bit more expensive than the larger chains, but it is convenient. People will make sacrifices for convenience.
- Is this the right area for my
business? If you have your sights set on a particular
industry or business style, then find an area for your business that has all of
the above points that already suit your business model.
For example, you may want to create a luxury hair salon but you are looking at a low-income area that is predominately families. But 15 minutes up the road in a neighbouring suburb you find an area filled with single professionals. Moving your business here could make all the difference.
If you’d like to discuss your options and see what businesses we have available, contact Core Business Brokers today, on (02) 9413 2977, or email Roy on [email protected]. Buying a business is a journey best undertaken with careful and considerate planning. Lucky for you, it’s what we do best!