Where It's At

Where It's At
The Perfect Location Is Not As Elusive As You Think

by Hollie Costello

When people are trying to start a business, they often seek the council of others who have been in their situation. For those who have a business, or even those who went out of business, one of the most important pieces of advice they can give a potential owner is where to build. As the old adage goes, the three most important aspects of opening a new business are location, location, location.

Study the Area

Knowing where you want to build is the first step in any business plan. Starting with a general area, and moving down to more specific locations, business owners need to consider more than the size of the space. They need to consider traffic flow, view from the street and distance from competition, otherwise known as a needs assessment.

Dean Bellas, president of Urban Analytics, Inc., a demographic consulting firm in Alexandria, Va., says a needs assessments is the cornerstone of any good business plan and a definite start to finding a prime location.

"You need to figure out where you are going to draw your business from," he says. "Are you the type of business that draws from street traffic or are more of your customers centrally located so they come to you--these are considerations for all businesses."

For small business, such as a first tanning salon, Ballas recommends working with local agencies and government departments to figure out such things as job market and zoning ordinances--most government agencies offer information for free or at a nominal cost compared to hiring a demographic consultant. However, for companies that have the money but don't have the time to do all the legwork, hiring a demographic consultant eliminates the properties that will not work--fine tuning the location search.

"Those who are starting a business for the first time may not realize the thought that goes into finding a location," Ballas says. "Locating the generic data from a free source may help point them in the right direction."

Demographic studies are, of course, very useful when working on a business plan and may, in the long run, be worth the original investment; however, small businesses, do not often have the budget to do large demographic profiles of the area that include shopping habits, median age and housing studies. Therefore, one of the best pieces of advice current salon owners can give future owners is to locate near major retailers and chains opening in the same area.

Large chains and retailers can spend, and do spend, thousands of dollars studying the population, housing and buying habits of the area they are about to purchase. They also tend to conduct in-depth traffic flow studies and can afford to work with the city or county to create better land use around their properties.

Know Your Audience

Since the indoor tanning industry primarily is patronized by females between the ages of 16 and 49, understanding their spending patterns and the demographics of the area in which the property is located can be important.

Knowing who the salon will sell to is a necessary trick of the trade that can mean the difference between success or failure. Oftentimes, equipment manufacturers or local franchise operations will help in creating a demographic survey of the surrounding area, making the decision where to locate easier for the salon owner.

"For any business, there are key needs that have to be met in order to be successful," says Ballas. "Customers--how you get them, where they come from and how you will capture new ones--are the backbone of all operations."

Ballas recommends locating near a customer base that works with your clientele. Since indoor tanners are predominately female in the young to middle-age range, locating next to a university or school setting, or even in a downtown location near large office buildings, would be a prime location for salons. In addition, business owners should look for the 100-percent corner--or the one location that everyone, from pedestrians to commuters to public transportation, can see from any vantage point.

According to Ballas, the 100-percent corner is a location that provides maximum exposure to the business, making success almost definite.

"Salons need that visibility," he says. "Their success depends on attracting customers to the shop."

Finally, try to find an area that continually is seeing both population and economic expansion. Projections generally are available at the census tract or block group (a portion of a census tract) level of geography and include data such as population, households, age and income. Apartment dwellers often are a great customer base for salons, especially those centered around university areas.

The Inside Counts

Knowing demographics and finding the perfect location will do nothing for the salon if there is not ample room for the creation of a professional salon. Customers continually are looking for a salon that has the look and the respectability of a professional business.

"Size is a very important aspect in making a location decision," Ballas says. "Most small businesses originally start out renting a location and must consider what will happen when they grow and need to expand."

Space limitations come with the creation of an indoor tanning salon. Separate rooms for the beds, as well as front counter display space and a lobby area are all considerations a first-time buyer must contemplate. Ballas says demographic consultants offer a basic consideration for all types of businesses, such as retail space should be at least 450 square feet per employee, or an office building should have 300 square feet per employee. However, that does not include such things as lobby area, bathrooms, even kitchen areas.

Other issues include the dictations of local zoning ordinances. If the property is not zoned for service, placing a tanning salon could mean more work than necessary. Yet, when a salon there owner comes across the perfect location, he or she would be hard pressed to forget it because of a zoning requirement. Going before the city council or city zoning commission could be as easy as proving you are bringing in a viable industry.

In addition, most equipment manufacturers and even tanning supply distributors can assist new salon owners in the creation of a blue print for almost a complete turn-key operation. Know where to look for advice and work with experienced indoor tanning professionals to create the ultimate salon from the get-go.

"Once a person looks at space considerations, then they must consider affordability," Ballas says. "Other than rent or lease, there will be business expenses for electricity, telephone and, if necessary, Internet hook-up."

Making a Location a Success

All these considerations and more are what makes choosing a location such an important step in the start of a business. By working with those who have experience, or hiring someone whohas worked with indoor tanning salons in the past, a salon owner may be better off. Yet for many, the dream of owning a tanning salon comes with the hunt for the perfect location.

"What is most important is determining the potential size of the business," Ballas says. "Look not only at the now but at the future as well."