An entrepreneur needs to find the best location to be successful. But, as the commercial market grows in the UAE and choices for retail space diversify, finding the right location can be challenging. Should you lease space in the various malls scattered metropolitan areas? A less expensive location farther from major traffic areas? Or a state-of-the-art building in an up-and-coming expat neighborhood?
The Fundamentals
If you don’t understand your customers, you’ll not be able to make informed decisions on where to open your business. When you know who your customer is and how they’ll buy your product. How your services you can begin your search for the right location. In the market research portion of your business plan, you should have determined what type of client you seek to attract.
Once you know your clientele, you can determine whether your business will rely on exposure or will be a consumer destination. Places such as convenience stores, coffee shops, laundromats, and fast-food restaurants fit into the exposure category. Your customers will choose your business because of convenience. Therefore, the more people that drive or walk by your business the more customers you’re likely to attract. There is a premium for a location in a high traffic area, however, without such a location, your business may not be a success.
Destination business is those that provide unique products or services or strong brands with loyal fans. Think of an Apple store or a Ferrari dealership, they could set up their business anywhere in Dubai and they will still attract clients. The same applies to a plastic surgeon or a well-known accounting firm.
Consider the Competition
Dubai has sector-specific areas such as the Gold Souk or the Dubai International Financial Centre, or purposely built commercial zones like Downtown Dubai which contains a cluster of business catering to both locals and tourists. In these cases, competition is a good thing. Competing stores will attract new customers to the area and all the businesses will benefit.
In other cases, a location within an area with too much competition can be harmful to your business. If you start a shawarma outlet in an area that’s saturated with shawarma outlets; you will not have enough customers to go around. Also, you might want to avoid areas where a well-established brand already controls the market. In this case, you’re better off finding an area of your market with limited competition. A location farther from your competition will lead to greater success
Customer Demographics
Knowing the population of your proposed location, the average income and growth rate of the surrounding communities. And the traffic flow on nearby roads can provide you with a good picture of your market. This data can be acquired from the Dubai Statistics Center.
Analyzing the demographics in your area and comparing it with the customer you defined in your business plan will help you get a better idea of whether you’re looking in the right area.
Speak to Local Experts
If you have conducted your research and gathered all your data, then the next best course of action is to speak to local experts. Start by speaking to real estate agents as they gather a lot of commercial data. They will be able to tell you which commercial areas are up and coming, along with areas that fall within your budget.
Speak to business consultants, as they have information on where businesses start and close. Consultants are involved in both ends of the spectrum of a business lifecycle which yields in a treasure trove of data. Schedule a free consultation with us and we help you turn your business dreams into reality.
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