Location Makes A Difference

“Location, location, location.”  This is a basic principle regarding business.  Location and image are so important the wrong location can undermine an otherwise sound business.  We saw this in this first episode of The Apprentice.  The location chosen by Kwame to sell lemonade was down by Fulton Fish Market and sales suffered accordingly.  So much that Donald Trump was shown flying over in his helicopter and he remarked, “You’re not going to believe this.  The men are at that smelly Fulton Fish Market trying to sell lemonade.  It’s a terrible location, and there’s nobody here.”

The two teams from season two, episode two, were tasked with a similar project, only this time it was ice cream, not lemonade they were selling.  Raj, from Mosaic, brought up location as being essential to their sales and the group.  The team chose Times Square as the perfect place to set up their ice cream stand.  The heavy traffic from this location would ensure lots of ice cream sales.  When the women of Apex saw that the men were going to sell in Times Square , they decided that they too would set up shop in Times Square .  Unfortunately, the women learned another lesson about location when they set up their ice cream carts in a prime, tourist location.  Their sales were interrupted shortly after setting up by an angry vendor who worked in that area.  The vendor demanded to see Apex’s Vendor Permit, which they did not have.  Rather than argue with the Vendor, Ivana decided the team should move.  This was a good illustration of how you can find an ideal location, but then have to jump through the hoops regarding zoning, permits and other red tape.

During the boardroom of week seven of the second season of The Apprentice, Sandy said the team did not get enough traffic for their dog washing business.  Trump suggested that the problem was their location.

For retail and hospitality businesses, location is essential, if not the all-important ingredient.  With others, such as an Internet based business, location is not as vital.  Because the reasons for locating your business in a certain place varies with the type of business, it is important to analyze this before you begin.  For the Apprentice lemonade stand, they needed an area with a good flow of people and little competition.  The same theories apply for a restaurant or retail business.  Location is also important for a manufacturer or wholesaler.  These types of business need to consider a site close to major transportation services and a location with a pool of skilled labor.  Zoning considerations and available services should also be considered.  Location impacts the cost of these considerations.

Besides assisting your business get off the ground, the location must be able to grow with the business in the future.  Because of this dependency on location, you should consider the economy and job market before deciding on your business location.  Find a location that is building up rather than wearing down.  A less expensive place in a “bad neighborhood” will cost you much more than you save. 

You must know what kind of employees you need and should try to choose a location where recruiting these types of employees will meet your expectations and budget.

            Finally, you need to choose a location in a community you are comfortable with and will enjoy spending time.  While some people own businesses in places where they do not live, the majority of business owners spend considerable time at their place of business and live nearby.  If it is not in a community that you enjoy and believe in, chances are you will not be as happy as you should be and your business may suffer as a result of this.

Trump Time Out – Location, Location, Location

            “I’ve always felt location is important, but the people behind the deal are much more important than the location.  I’d much rather have a really smart talented guy doing a deal in a not so good location than an idiot doing a deal in a great location because you’ll make money every time.”  - Donald Trump from The Apprentice, season one episode one.

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