It’s all about the 3 “L”s.
I am always amazed when I am walking through neighborhood business districts at the diversity of shops that one sees. So it always strikes me as equally odd, when I run into an area that has multiples of a certain type of business. For example, in my neighborhood, there is a 2 block stretch that has 3 flower shops. Floral businesses do many transactions by phone, and over the web, but if you have a business that relies on walk in traffic as well, you need to do your homework.
The mantra of real estate has always been the 3 Ls – location, location, location. Well choosing a place to put your business requires the same mantra. A little research can go a long way to ensuring that your business succeeds. Some of the first things to consider before choosing where to locate your business are the demographics of the area, and what other businesses are located in the area you are considering.
Statistics Canada, with census information, provides a wealth of information going down to the census tract level – a very specific geographic area. One can get a detailed breakdown of the area by aspects of age, sex, and household income, to name a few. Want the bigger picture for a neighborhood? Check out the City of Toronto's Neighborhood profiles. If you are looking at a smaller city, then you could consult FP Markets – Canadian Demographics, a publication of the Financial Post that gives big picture detailed demographics.
Checking a directory such as Scotts Business Directory, can give you an idea of what businesses are located on the street or streets surrounding the area that you are considering. The directory is available either on-line – both at home and in the library, or in the library, in print.
Of course there are many other factors to consider, but starting with the big picture could help you put everything else in perspective.
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