What do I need to know to pick a good location for my new business?

As in real estate, the well-worn but nevertheless accurate maxim, "location, location, location," holds very true. While you might be able to survive a bad employee, surviving a bad location is very difficult. So pick smart.

But remember this, not all businesses need to pick a dynamite location. For example, janitorial services, direct mail companies or lawn care services really don't need to worry about their location because drop-in business is not in their business model. But a restaurant needs a good location.

If applicable, the first thing to do is speak with your franchiser. One of the best aspects of buying into a good franchise operation is that you should get plenty of advice and help from the franchiser. The franchiser will know what you should look for and what works best. In your case, a restaurant business, it is very likely that the franchiser has the right to disapprove of your site location. The good news is that you can expect them to give you considerable help when picking a location.

Businesses should consider the following when choosing a location:
- Traffic. Ideally, you would like the site to be near some centers of activity. My father owned a chain of carpet stores when I was growing up, and he loved to be across the street from malls. He figured that he got the benefit of the mall's advertising and traffic, but without the high rent of actually being in the mall.
- Competition. Where is your competition located? Fast-food restaurants often like being bunched together, but print shops usually like to be the only one in the neighborhood.
- Visibility. Businesses need to be seen. Make sure your potential location is visible from major roads.
- Signs. You need to be sure that there are no restrictions in the lease or the law that will limit your ability to post adequate signs for your new business.
- Zoning. The spot, obliviously, needs to be zoned for your type of business.
- Appearance. Is there adequate parking? Is there a bathroom for the public? Make sure the place is landscaped well, has adequate outdoor lighting, and has appropriate businesses nearby.

There are many different sorts of locations that may have all of these questions already answered, such as shopping centers. While a shopping center or mall can be a great spot for many businesses, you must weigh the benefits against the aforementioned high cost of doing business in that location. Especially as you expand, you want to be conservative with your capital. I am not saying don't go to a mall, but rather, be sure that you will be able to make a profit.