You have made the first step, and decided to look at buying your own business.
Whether it is a franchise or an individual business, you must be asking yourself where to locate this opportunity, OR is the existing business I am looking at located well, and amongst a suitable demographic.
The first question you need to research is “who is my customer?”
By using observation, some sorts of surveys, or looking at the addresses of where the business supplies goods and services, you can get a reasonable understanding of who the customer is.
Obviously, if you are buying a franchise, the franchisor should have some information or views on who their customers are so that you can learn a bit more about them.
This information can be analysed to show areas most suitable to the product and services you plan to sell.
Once you have a clear understanding, it is very important to look at the area to see how this matches up in terms of the customer to the demographic. You can look up the Australian Bureau of Statistics website or various State Government sites depending on your location.
The various government websites have general information, however if you want specific information, such as a Residential Demographic Summary at a 2km, 3km or 5km radius, you probably need to use a demographic consultant.
Other information to be considered is:
- Business Demographics – who and how many people work in the area
- Competition – both direct and indirect, and how close it is
- Some form of mapping which shows the competition and population density
If you would like further information, or would like to order some data, please contact Spectrum Analysis.