# How important is location to your business?



## GlobalTees (Jul 28, 2010)

We're a small screen printing shop that we have been operating out of our house for the past 5 months. Simply through word of mouth we've grown to the point where we need a commercial location. We plan on doing screen printing, but we also plan on launching a retail line in the coming months.

We have two options. 

One is a low-rent location with a large space. There is limited walk-by traffic (we counted about 10 people in a 6 hour period). It's also not in the best part of town.

The other option is for sale (we would purchase it as an investment property). It has even more space than the first location and the foot traffic probably exceeds 1,000 people on an average day. We would also be able to rent the top of the building as lofts and come close to breaking even on our mortgage payment. However, the taxes are high and the utilities will be expensive. My guess is we'll end up paying twice as much as this one every month compared to the low rent location. 

My question is: How important has a good retail/commercial location been for your business? 

Would the additional walk-by traffic generate enough business to justify purchasing this space?

Any other additional information about your location and how it has proved to be successful or unsuccessful?

Thanks in advance for any help.


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## IYFGraphics (Sep 28, 2009)

GlobalTees said:


> My question is: How important has a good retail/commercial location been for your business?
> 
> Would the additional walk-by traffic generate enough business to justify purchasing this space?
> 
> ...


If your going to have a "retail/walk-in" business then the location is very important, the easier it is for your customers to find you the better, and the number of passers-by that will notice your business and make a mental note of seeing it is also important.

As to if the traffic will generate more business.....it's a question no one can really answer but the fact is it can't hurt in any possible way, the more eye-catching you make your displays to draw attention, your signage, every aspect will have an impact either positive or negative.

I like the idea of renting part of the building to off set the cost, but is that going to require an additional investment to make it happen? can you sustain the costs along with running your business until the area is rented? do you have capital to buy the building, run your business, and do the improvements? or will you be borrowing all the money?

Do you do any advertising now? if you choose the other location do you think advertising your business and location would improve walk-in traffic?

Just a few things to consider.

Hope this helps.


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## GlobalTees (Jul 28, 2010)

We do want retail to be a large part our business soon however currently screen printing is the primary source of our income. 

As far as costs, we're lucky to have some family members who are willing to provide the down payment but we will have to borrow money for renovations. In the end we'll be paying twice as much every month for the good place.

I feel like we'll easily make that money back just from the foot traffic we get, and then some. I also feel like the potential for growth is endless for a good location, and a poor location somewhat limits your growth. 

I would also be very curious how some of you started and how you grew to where you are today?


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## 1leonchen (May 10, 2010)

have u reach the break even point yet.


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## foot print (Jun 2, 2010)

All I can say 5 months and already looking to move up in the world..WOW that is truly remarkable I wish you continued success and as much growth as you can handle.


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## binki (Jul 16, 2006)

if you are going to have retail then you need the high foot traffic area. even if you are not being in a bad part of town will not help you. 

we moved from our garage to a downtown retail area and things really have picked up for us. we are planning on 3 years before we see enough income to pay for it but moving to an industrial park would have not done anything for us.


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## Nate773 (Sep 15, 2010)

How about renting a small retail space with an office and showroom and using it as an intake/pickup location while keeping the shop in the garage?

That way you get the benefit of visablity without the PIA of big financing and renovations.


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## 1leonchen (May 10, 2010)

Nate773 said:


> How about renting a small retail space with an office and showroom and using it as an intake/pickup location while keeping the shop in the garage?
> 
> That way you get the benefit of visablity without the PIA of big financing and renovations.


good suggestion


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## arpa (May 18, 2011)

quick question: Will it matter to have a store front location with footraffic if you are just a screen printing company, or are you better off getting a commercial space with low cost for rent and getting clientelle through the net and word of mouth...?


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## binki (Jul 16, 2006)

your challenge will be this. you will pay retail prices for the retail front but you want to pay warehouse prices for the back. so if you can work a deal with the lease to pay $x/sqft for the retail space and $y/for the production space you will be good. 

if you have 2 locations you are going to need to be able to travel to both and keep your retail doors open. this can be a real pita if it isnt planned out.


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## arpa (May 18, 2011)

Thank you for your feed back, appreciate it!!


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## shirts456 (Mar 30, 2011)

location, location, location.


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