Business Basics.... Research!

This doesn't really fit with my regular Blog topics, but I had to rant a little bit.

Today at lunch, I was browsing through Business Exchange - the free magazine where people offer businesses and related services for sale. Amongst the plethora of cafes, convenience stores and other franchises for sale, one particular business caught my eye.

In Richmond Hill, on Bayview Ave. at High-Tech Rd. (near Hwy 7) there is a small, barely noticeable strip mall on the East side. The North-most unit in the plaza is a restaurant. Over the past 10 years or so, I remember this location being (in order):
- A donut shop / cafe
- An Italian hot-table
- A Persian restaurant (which, for some reason sold Shwarma and Pizza???)
- A casual bistro

Much to nobody's surprise, the current business was listed for sale in the Business Exchange. In fact, I remember asking "Why?!" when I noticed the Bistro opening in place of the failed Persian Pizza place.

I have three words: "Location. Location. Location."

If you're opening a business, you need to do some basic research. First of all - look around you. If your soon-to-be business is situated off the beaten path, hard to see, hard to get to, overshadowed by a larger plaza on the other side of the street with multiple anchors like a huge Loblaws and a Tim Hortons, you probably want to reconsider.

Secondly, you should be able to get some history on your location. If you see that three other restaurants have failed in that location in a 10 year period, a red flag should go up.

Finally - look at the demogrpahics. The next door neighbour to this bistro is a co-operative housing development. That means low-income families. Probably not the type of people that are going to eat at your bistro often, if at all.

There is no guarantee that any business will succeed and every entrepreneur should understand the risk involved. By the same token, there are ways to greatly increase your chance at being successful and one of these is to do your homework.

See you later Honey's Beestro... we never really knew you.