What To Do Before Site Selection

Open shop must have a business site, and the first step to determine the venue and layout is to determine the business area and then shop location.

What is business circle?

Business circle refers to a round area formed by extending the distance from the shop location to the core. It is the geographical area where the shops attract customers.

It consists of core business circles, sub business circles and marginal business circles.

The core business circle is the closest place to store and the highest density of customers. It accounts for about 50% to 70% of the customers. The periphery of the core business circle is more dispersed and the market share is relatively low.

Generally speaking, there are four forms of business circle:

1. business district.

It is a concentrated area of the business sector, characterized by a large floating population and bustling shops.

2. residential areas.

It is a centralized residential area with at least 1000 households. The consumption habits and consumer groups are stable, and the purchase rate of convenience articles and household goods is higher.

3. cultural and educational areas.

There are large, middle, primary schools, hospitals and so on. The consumption groups are mostly students, patients or family members of patients. The consumption amount is not high, and snack foods, cultural and educational supplies are relatively high.

4. office area.

The district is an office building. The consumption habits of the office area are convenient, the population is large and the consumption level is high.

5. mixed area.

There is a single consumption characteristic and diversified consumption habit in the mix of residence business and mixed residence.

After determining the business circle, the entrepreneur must next determine what area in the business circle to determine a shop site, so to speak, the better the location of the store, the more passenger flow and the stronger the surrounding consumption ability, the more advantageous to your business, because the advantages and disadvantages of geographical location are directly related to your business scope.

Residential areas, downtown areas, cultural and educational areas, mixed areas, and all types of regions have the opportunity to survive and develop for enterprises with different business scope. That is to say, entrepreneurs should choose areas suited to their own conditions according to their own business objectives and contents.