📺 Stream EntrepreneurTV for Free 📺

I am thinking of locating my upscale clothing store in a brand-new strip plaza where the only other business is a barbershop that just opened. Should I choose this location?

By Brad Sugars

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

It's located on a street with a lot of strip plazas, and a half-mile or a mile away there are cheap clothing stores such as Big Lots, Conway's, Family Dollars and Dots Fashion. The demographics show that it's economically feasible in the ZIP code I'm looking at, but the people I've seen in the area don't seem as though they could afford the type of clothing and jewelry I want to sell. The landlord is offering three months' free rent.

You really want to be in a space occupied by a supermarket or dry cleaning business or other renters that generate good foot traffic, preferably in the type of demographic you are trying to target.

If you don't, then you have to create your own foot traffic, and the question becomes: Will you generate enough from your marketing
expenses to make the lower rent worthwhile?

The reality is, probably not. Better to "buy" built-in foot traffic then create it yourself. Especially if you would have to create it out of a customer base outside of your target.

All the best.
Brad Sugars

Brad Sugars is the founder and chairman of ActionCOACH. As an entrepreneur, author and business coach, he has owned and operated more than two dozen companies including his main company, ActionCOACH, which has more than 1,000 offices in 34 countries.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Franchise

Franchising Is Not For Everyone. Explore These Lucrative Alternatives to Expand Your Business.

Not every business can be franchised, nor should it. While franchising can be the right growth vehicle for someone with an established brand and proven concept that's ripe for growth, there are other options available for business owners.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

Passengers Are Now Entitled to a Full Cash Refund for Canceled Flights, 'Significant' Delays

The U.S. Department of Transportation announced new rules for commercial passengers on Wednesday.

Leadership

Why Companies Should Prioritize Emotional Intelligence Training Alongside AI Implementation

Emotional intelligence is just as important as artificial intelligence, and we need it now more than ever.

Business News

Elon Musk Tells Investors Cheaper Tesla Electric Cars Should Arrive Ahead of Schedule

On an earnings call, Musk told shareholders that Tesla could start producing new, affordable electric cars earlier than expected.