Several Steps To Understand The Location Of Opening A Shop

Before developing a new store in a district, we should first make a new store development plan.

In different stages of the store, there will be different development plans in the same area, so when we first enter a certain area, we should first consider establishing a brand image in the minds of consumers. In addition, we should pay close attention to the expansion plan of our competitors to make our own shop opening plan.

To develop new stores in a certain area, we need to know more about market information in this area. It includes population, employment, shopping places, entertainment and so on. The population includes population, age, ratio of male to female, distribution of residential population, etc. employment includes employment population distribution, category convenience, convenience of new stores, main office buildings, fixed population and floating population. Shopping places include location, business hours, main customers and so on; entertainment includes location, usage rate, age, appearance and business hours; traffic includes total number of passengers, number of passengers at the station, competitors, including location, relative advantages and disadvantages, and estimated turnover; government's plans and regulations include limit construction, future plans, highway changes, etc. business dynamics include economic growth rate, unemployment rate, new projects and so on. In the collection of market information, we should pay more attention to business circles. The so-called business circle refers to the sales area delineated by the location of the new store as the center and with a certain distance around it as the radius.

Location advantages and disadvantages evaluate It is to evaluate the quality of a location, and compare the results of a specific location with several specific attributes of other locations in the business circle.

Locale Rating level Size, time factor, building structure and appearance. Business circle The price of the similar property is to determine whether the owner or broker's asking price is reasonable. Location rent or selling price will have a greater impact on the profitability of new stores in the future.

Not all good places are suitable for opening stores, especially for different types of stores. Can all kinds of practical factors need to be considered meet the requirements?

After conducting business district investigation and location analysis, a similar store is selected for comparison, and the distribution of new stores' hourly, daily and weekly turnover is estimated, and the monthly turnover of new stores is estimated by considering the difference of operating income between seasons and holidays. If opening a new store may affect the turnover of other franchised stores, it is also necessary to estimate the impact of new stores on old stores.

The prediction and analysis of financial situation is a very important link in the location of new stores. In this step, we should focus on evaluating the financial indicators of new stores, including profitability, total development cost, return on investment, investment recovery period, capital preservation turnover, contribution profit, cash flow and so on.