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Geoff Kohl

Guide to Making the Most of a Bad Location

How to succeed in a location where other businesses have failed


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Some locations seem to be cursed—like the corner where Four Brothers Pizza and Tap tried to make it happen in 1995. By 1998, the four brothers were gone and all that was left were four lawyers trying to straighten up the assets on a failed restaurant. The year 1999 saw Kelly try to start a Vienna-style café in the space. By 2003, the coffee was cold and the “For lease” sign returned. Ray started a TV repair shop there that same year, but by 2007, the only thing he was repairing was his credit after four dismal years of trying to make a go of it.  Now you’re looking to start your business or add another location and the spot caught your eye, but you’re a bit wary of the space’s dark history. Despite an improbable past, sometimes a seemingly “bad” location can be made to work. Just don’t make the same mistakes the predecessors made.  When it gets down to it, you need to consider a few things: 
  1. Is there a business clientele and do they look for your services in that area? Sometimes there are symbiotic relationships in small businesses. Ever notice how the “to-go wings and sandwiches” restaurant put itself next to the movie rental store? Or how the wine store placed itself next to a grocer? Does a fine dining restaurant really make sense next to a discount electronics retailer?
  2. Can people see you? If the business is tucked into a dense strip mall, will people know you’re there? If not, how are you going to remedy that?
  3. What’s going to get someone to come in for the first time? Face it, we’re all busy and we all have our routines. Sun takes care of my dry cleaning. Ace gets me the hardware I need. Caribou gets my coffee. How are you going to break someone’s routine?
  4. Can they get to your business (and are they willing to get there)? Moms aren’t going to take their kids to your ice cream shop if you’re next to the tattoo parlor, and the people who just want a sub sandwich to go don’t want to look for parking for 10 minutes so they can get to your Subs-n-Wraps shop.

Action Steps
The best contacts and resources to help you get it done

Create excellent signage


Hang out your shingle and let it reflect your personal style and the business’ style. If you want to say “discount”, you can do it with not only what the sign says, but also with how it’s designed. Want to say homey and luxurious – the sign can do the same thing if you add a luxurious design. As any sign-maker will tell you, “A business with no sign is a sign of no business.”

I recommend: FastSigns is a national franchise that’s printed a few signs, to say the least. They have two great pages you should check out. The first is there guide to the types of sign you might want, and the second is a page with links to signage ideas other business have used. Score.org has 5 great tips on business signage that are worth your time. While you’re thinking about signage, keep in mind that the Americans with Disabilities Act has requirements about proper signage. I also really like this chart about how letter height affects the maximum readable distance for a sign.

Redesign and light it up


Not only is your signage your 24x7, well-positioned advertising, but so is the business itself. Not only should your signage be well-lit, but so should your product. Consider adding lights that show what you are. Maybe a dim light on at night rather than darkening the entire space lets people know you’re selling leather couches and pool tables. On top of lighting, make sure that the place feels right. A tax office should feel frugal, a boutique should feel friendly.

I recommend: Hire a design consultant specializing in commercial spaces. Look for one who is a member of the American Society of Interior Design, or use that group’s search page.  Check out lighting manufacturer Sylvania’s business lighting ideas webpage – which shows great examples of good business lighting.

Come up with a promotion


An advertiser with a new tennis shop once complained to my former publisher, “I don’t know if my ad is working.” The publisher told the owner he should give away a free can of balls to everyone who brought in that ad. Two months later, the shop was short on cans of tennis balls, but it had brought in a huge array of potential customers. Help break someone’s routine of getting your services elsewhere by enticing them in.

I recommend: Flip through the ideas and entries from the 2006 Reggie awards from the Promotion Marketing Association. Admittedly, most of these are from national accounts with deep pockets, but they can inspire your own promotion idea. Or take a cue from your competitors in the area. Did they give away a free Coke and bag of chips? Did they sponsor the local 5K?

Invest in advertising


Yes, you may get annoyed when advertisements pop up during your favorite TV program or carpet a web page, but the fact is that advertising can work. The first thing you need to think about is not where you spend your ad money, but who are you really trying to reach -- the person driving through the area or the local? The local 20 and 30-somethings or the married-with-kids and the Boomers?

I recommend: Some people go to school for years just to learn about marketing, but you can use more easily available resources (like this book by Luc Dupont) to fast track your advertising  plan. You may need a copywrighter or a graphic designer to help you out, and places like Elance.com can help you get bids for your project.

Watch where you park


Tailor your parking lot to what your customers want. If they are concerned about security, give them security. If you need more spaces, redesign the layout to allow people to get in and get out faster, thereby creating more traffic for your business.

I recommend: Metal halide flood lights can really brighten up a dark lot and add security. You may also want to redesign  your parking lot so that traffic moves through it better. Barco Products sells all the products you would need to redo your parking lots markers if you choose to do it yourself.

Tips & Tactics
Helpful advice for making the most of this Guide

  • Negotiate cheaper rent to create an easier-to-meet bottom line. If businesses keep going out of business at the location, chances are the landlord is a bit concerned as well and doesn’t want a dud of a property sitting empty. Use this to your advantage to seek a rent that is lower than standard rents in the area.
  • Talk to the previous business owners. Hindsight is indeed 20/20, and if you can track down those previous business owners, they may be able to tell you what they would have done differently to improve that location’s profitability.
  • Get involved with the community. Above all, you don’t want your location to feel isolated from the community. The aforementioned ideas like signs, promotions, better parking can all help, and so can a community project. Some businesses make charitable donations or sponsor the local charity 5K run. The screen printer might comp a batch of free shirts for the T-ball team. Creating those tie-ins can help create loyalty with customers, even if they still hate your location!
  • Come up with two good reasons for someone to stop at your business. A lot of mail shops get this concept. Not only are they providing UPS or FedEx services, but you also can provide a private mailbox. They often sell moving supplies too! It doesn’t work with all business concepts (Coffee and furniture refinishing doesn’t have the ring to it that coffee and books does, right?).

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