Business experience of opening a store: all kinds of store business optimization and management deta

Chapter 7 Business Classic 1: "Golden Treasure Land" is Indispensable ([-])
[-]. Never underestimate the site selection
Why Site Selection Matters
When opening a store and doing business, everyone knows the importance of location, and choosing the right location has virtually laid a solid foundation for your business building.On the contrary, even if you have very good management skills, the business may not do well.

Those who open a store need to analyze the business district, and their purpose is to choose an appropriate store location.Appropriate store location has a decisive impact on commodity sales. Usually, store location is regarded as one of the three main resources of a store. Some people even use "location, location, and location" to emphasize the importance of location selection.

The specific opening location of the store determines the number of customers in the store, and at the same time determines the level of sales of the store, thus reflecting the value of the store site as a resource.The importance of store location selection is reflected in the following aspects.

1 The investment amount is relatively large and the period is long, which is related to the development future of the store

Whether the store site is leased or purchased, once it is determined, a large amount of capital investment is required to build the store.When the external environment changes, it is not possible to make corresponding adjustments to business elements such as people, money, and materials. Only by in-depth investigation, careful consideration, and proper planning can a better choice be made.

2 Its determination is an important basis for the establishment of store business objectives and business strategies

Different regions have their own characteristics that are different from other regions in terms of social geographical environment, population and traffic conditions, municipal planning, etc., which respectively restrict the source of customers, characteristics of the stores in their areas, and the store's ability to operate commodities, prices, promotions, etc. Selection of sales activities.Therefore, when determining business goals and formulating business strategies, operators must consider the characteristics of the area where the store is located, so that the goals and strategies are more realistic.

3 It is an important factor affecting the economic benefits of the store

Proper selection of store location means that it enjoys a superior "geographical advantage".Among the stores in the same industry, if the scale is the same, the composition of goods and the level of business services are basically the same, they will have a greater advantage.

4 It implements the principle of customer convenience

First of all, it takes the convenience of customers as the first principle, and from the perspective of saving customers' time and costs, it meets the needs of customers to the maximum extent, otherwise it will lose the trust and support of customers, and the store will lose the basis for its existence.Of course, the convenience customers mentioned here cannot simply be understood as the location of the store being closest to the customers, but also considering the needs and buying habits of most target customers, and striving to provide customers with a wide range of choices under the premise of conforming to municipal planning. , so that they can purchase the most satisfactory products.

What factors should be considered when choosing a store location
1 Funding factor
The previous section explained how a shop owner should choose an appropriate regional location.Here we will continue to discuss the selection of the store location. It is different from the selection of the regional location in that in the same area, the owner of the store can often have several locations to choose from. Therefore, the owner of the store should also fully consider the relevant factors. , select the appropriate location.Usually we will consider the rent and lease agreement. For shop owners, rent is often a big burden for shop opening.Stores with fast turnover, small size and no space occupation, such as boutiques, service stores, restaurants, etc., can be located in high-rent areas; while furniture stores, thrift stores, etc. that require large space, are best located in low-rent areas. rental area.

There are two types of rent: fixed price and percentage. The former rent is fixed, while the latter rent is lower, but the landlord shares a percentage of the total income, similar to investing in a store as a shareholder.As for the lease, the most cost-effective way for first-time shopkeepers is to sign a one-year or two-year lease for the option of renewal.

2 traffic factors

Parking facilities on site

Determining a parking lot with an appropriate size can be determined according to the following factors: the size of the business district, stores, scale, other parking facilities, how many non-purchasers park and the amount of parking at different times.

Traffic conditions near the store

We need to consider whether the store location is close to the main road, whether it is convenient to transport the goods to the store, and whether the delivery is convenient, etc. In some cities, there are many streets (usually during the day) that prohibit freight vehicles from coming and going, Beijing is an example.

traffic details
Stores located in the commercial center of the border area should analyze the distance and direction from the station and dock.Usually the closer the distance, the more passengers.The opening location should also consider the direction of passenger flow. If you choose a location facing the station, the passenger flow of getting off the bus will be the main flow;

At the same time, we also need to analyze the advantages and disadvantages caused by market traffic management conditions, such as one-way streets, streets where vehicles are prohibited, and long distances from pedestrian crossings will all cause insufficient passenger flow.

3 passenger flow factors
The size of passenger flow is a key factor for the success of a store. Passenger flow includes existing passenger flow and potential passenger flow. Usually, the store always tries to choose the place with the most potential passenger flow and the most concentrated place, so that most people can buy goods nearby. Carefully consider the specific situation from a different angle.

Passenger type
General store passenger flow is divided into three types, namely: own passenger flow, which refers to the passenger flow formed by those customers who come to the store to buy a certain product; shared passenger flow, which refers to the passenger flow obtained by a store from the passenger flow formed by adjacent stores; , refers to the passenger flow formed by customers who drop by the store, and these customers just come to the store to shop at will.

Passenger flow purpose, velocity and dwell time

Although the scale of passenger flow in different regions may be the same, their purpose, speed, and residence time are different. Specific analysis is required before making the best address selection.

street features
When choosing a location to open a store, it is necessary to analyze the relationship between the characteristics of the street and the scale of passenger flow.The crossroads have concentrated passenger flow and high visibility, which is the best place to open; some streets have different traffic conditions at both ends or lead to different areas, and the passenger flow mainly comes from one end of the street, which is characterized by concentrated passenger flow at one end and gradually decreasing in depth. The store location should be located at the end where the passenger flow is concentrated, and the passenger flow in the middle of some streets is relatively large, and the store in the corresponding middle section can attract potential customers better.

4 competitive factors
The competition situation around the store will have a great impact on the success or failure of the business, so it is necessary to analyze the competition situation when choosing the location of the store opening.Generally speaking, if there are many competitors near the location where the store is opened and the store is operated with unique characteristics, it will attract a large number of customers and promote sales growth. Otherwise, it will not be able to open up sales if it is adjacent to a competing store.

Nevertheless, the location of the store should try to choose a place where the store is relatively concentrated and has development prospects. Stores operating optional commodities should pay special attention to this.Moreover, when the store types around the store site are coordinated and coexist to form a group of related stores, it will often have a positive impact on the operation. For example, if stores operating complementary products are located adjacent to each other, on the basis of convenience for customers, they will expand their respective sales. That is to say, it is beneficial for everyone to fish together.

What are the characteristics of an excellent store address
A best store site should have the following six characteristics, generally at least two, if you have all of them, it will be called a golden treasure.

1 Areas with high frequency of commercial activities
In the downtown area, commercial activities are extremely frequent, and the turnover of a store in such an area is bound to be high.Such a store location is a land where every inch of land is precious.On the contrary, if you set up a store in a place with a small passenger flow, it will be difficult to increase your turnover.

2 Areas with high population density
The places where residents live together and where the population is concentrated are suitable places to set up shops.Where populations are concentrated, people have a great variety of needs for commodities.If the store can be located in such a place and is dedicated to meeting people's needs, it will definitely have a prosperous business. In addition, the income of the store here is usually relatively stable.

3 Facing streets with high traffic

The store is located on the street with the most traffic, which can make shopping more convenient for most people.

4 Areas with convenient transportation
For example, at the station where passengers get on and off the most, or near several major stations, you can also set up shops in streets where customers are within a short walking distance.

5 close to places where people gather
Such as cinemas, parks, playgrounds, dance halls and other entertainment venues, or near large factories and institutions.

6 Blocks where similar stores gather

A large number of facts have proved that for those stores dealing with shopping and durable goods, if they can be concentrated in a certain area or block, they will be more able to attract customers.From the customer's point of view, the large number of stores means that the goods are complete, which can be compared for reference, and there are many choices. They are not afraid of unreasonable prices. It is a natural choice when shopping.Therefore, entrepreneurs do not need to be afraid of competition. The more peers there are, the more popular they are, and the better their performance will be, so there will be more and more stores.Various professional streets have been formed in many cities. For example, in Guangzhou, you have to go to Beijing Road to buy clothes, and Haiyin to buy electrical appliances.

How to choose a store location if the funds for opening a store are limited
When the founder has less funds, as long as the strategy is appropriate, a suitable store can be selected.Generally speaking, there are four rules for small-cap entrepreneurs to choose a store: choose the area where you live, choose an area that is economically or personnel related to you, choose the area you want, and choose an appropriate area within your budget.The first two options are to use geographical relationships, which can make extensive use of existing interpersonal relationships to expand business and lay a foundation for entrepreneurship; the latter two must refer to industry characteristics and consider location characteristics.Before choosing a location to set up a store, it is necessary to conduct a certain investigation and analysis of the local conditions, and determine the business content, pricing strategy, personnel planning, business hours, etc. according to the investigation results.If everything fits your criteria for opening a store, act fast.Of course, we must also pay attention to choosing a store and not blindly seeking low rent.The purpose of opening a store is to make money, and a store that can make you money is a good store.

If you are very interested in the prime location, but suffer from insufficient funds, the method of sub-letting the store may be able to help you.Usually, opening a store in a bustling and popular area has a higher chance of success. For example, coffee shops, restaurants, clothing stores, department stores and supermarkets, etc., if they are located near stations, night markets, and movie theaters, they will occupy at least seven points of the site.Because the constant flow of people is a guarantee that there are so many potential customers, as long as the products sold or the services provided can meet the needs of consumers, there is no fear of poor performance.However, the rent of shops in such areas is often extremely high, and most of them have already been occupied first, so it is not easy for entrepreneurs to obtain a place.If the industry you choose is very suitable for setting up a store in a lively area, but you can't find a storefront, and you don't need much space, you might as well adopt the method of sub-letting the storefront, which is the current popular "compound storefront".

Find a suitable partner in your favorite location and share a store, which can not only save rent, but also complement each other if two industries under the same roof have similar customer attributes and complementary products. The store will not refuse either.The forms of these complex stores are quite common, such as flower shops and coffee shops, jewelry and clothing stores, pottery and tea houses, cold drinks and snacks, etc.

[-]. Analysis of the business district

What is a business circle and business circle analysis

1. Business District
The business circle refers to the area where the store is centered on its location and extends along a certain direction and distance. Those customers who prefer to shop in the store are distributed. In other words, it is the geographical area where the target customers of the store are located.

The scope of sales activities of a store usually has certain geographical boundaries, that is, a relatively stable business district.Due to differences in commodities, traffic factors, geographical location, and business scale, different stores have great differences in the size and shape of their business districts.Even for the same store, different factors may cause changes in the business district at different times. For example, there is competition in the original business district, which attracts some customers. The circle shape is manifested as various irregular polygons.For the convenience of analysis, the area delimited by the location of the store as the center and a certain distance as the radius is usually considered as the factor for setting the business district.

However, for a large store, in addition to the surrounding areas, the scope of its business circle must also take into account the distribution of the transportation network. Areas where customers can easily come to the store by using various means of transportation should also be included in the store. lock up.

2. Business district analysis
The so-called business district analysis refers to the on-the-spot investigation and analysis by operators on the composition, characteristics, scope and factors affecting the change of business district scale, so as to provide a basis for selecting store locations, formulating and adjusting business policies and strategies.The role of business circle analysis is reflected in the following three aspects:
It is the basis for reasonable location selection of new stores
When choosing an address for a new store, always strive for a larger target market in order to attract more target customers.This first requires new store operators to clarify the scope of the business district and understand the details of the business district. This shows the importance of business district analysis in this process.

It helps in formulating competitive business strategies
Especially in the increasingly fierce market competition environment, it is too limited to only use price competition means.In order to gain a competitive advantage, stores widely adopt non-price competition means, such as improving image, improving after-sales service and so on.Through the analysis of the business circle, the operator adopts a competitive business strategy according to the requirements of customers, so as to attract customers and become the winner of the competition.

It helps in formulating go-to-market strategies

The formulation or adjustment of a store's operating principles and strategies must always be based on the current situation and development trend of various environmental factors in the business district.Through the analysis of business circles, it can help operators formulate appropriate market development strategies, continuously extend their business tentacles, expand the scope of business circles, and increase market share.

How to divide the scope of business circles according to customers
Commercial districts are divided into central commercial districts, secondary commercial districts, and peripheral commercial districts. As mentioned above, for the convenience of analysis, we compare commercial districts to concentric circles centered on store locations and expanding around.

The central business district contains 55% to 70% of the total number of customers.It is also the area closest to the store, and has the highest proportion of customers and the highest average spending per customer in this business district. It rarely overlaps with other business districts.The secondary business district usually includes 15%~25% of the customers. This is the business district located on the periphery of the main area, and the customers are scattered.Commodities have little appeal to customers in this trade zone.The surrounding business circles include the rest of the customers, who live most scatteredly, and convenience products cannot attract customers in the fringe areas, so they are more suitable for shopping.

Each store has its own range of business circles, and the groups that customers in this range may come from are usually divided into three parts.

1 Residents
It refers to the resident population living near the store. This part of the population has certain regional characteristics, and they are also the main source of customers in the central business district.

2 working group
(End of this chapter)