Since starting Hancock & Fox, I have completed a number of commercial business projects from scratch and have faced the same problems to solve and discussions with every client. For this reason I thought it would be useful to take the time to share my thoughts on the subject with any current or prospective public-facing business owners. I could be stating the obvious, or maybe not...
This is a topic I touched upon in previous pieces, and it’s something which I honestly don’t think enough independent retail, entertainment and leisure businesses take into consideration or explore as much as they should to avoid unnecessary risk with their investment.

How do you decide who or what your target clientele is? How do you develop the image of your business to communicate with them effectively on the correct level?
    Now, if you’re serious, I’m sure you’ve already got a solid business plan and looked through it with your bank and/or investors at great length but people with different skill sets have different perspectives, so It can’t hurt to give mine (after all, it’s free!).
   
It can be a minefield of factors to consider but everything is based on which of the following is decided first: The concept or the location? There are two ways of looking at the problem. A location might become available for a commercial business which the owner/investor(s) think is a real opportunity. If this is the case then I strongly believe that the concept must be based on the strengths and weaknesses of the location with a completely open mind. Assuming the location is already in place, there are a number of questions which must be asked and answered beyond doubt before proceeding with the project and developing the concept.  Just a few of those could be…

Who are the direct, surrounding competition? What has made them successful/given them longevity?
Do the competition have all bases covered? i.e. Are there any potentially successful market niches which are not catered for in the area? (Do NOT create a carbon copy of a successful nearby business as an easy/safe option. This is a very common mistake and all this achieves is dividing the customer base... You want your own cake, not a slice of theirs)
Are these places busy every day/night of the week? If not, why not? What are they missing?
Is there enough trade to sustain all similar businesses in the area?
Economically and socially, what is the area like?
How much traffic do you need through the business per week to balance the books? Is this feasible? Is the venue big enough? Is it too big?
The list goes on...
   
Once you have begun to answer these questions (and many more beside) with solid research, you can begin to create the concept for the property.  A concept encompassing the target clientele, pricing, marketing, interior decor and how it will communicate the message of brand to the target user etc will take shape quickly. The answers will be clear to see. The architectural appeal of the venue itself might completely change any preconceptions of the concept you had in mind (e.g. an old church, bank, power station etc all carry their own personality and therefore could alter the concept)

This is where it is vital to get a knowledgeable professional on board. Someone who can take a different, emotionally detached perspective and evaluate all these factors to make decisive decisions to maximise the potential and avoid missing lucrative opportunities. A commercial interior designer worth their salt is not just about aesthetics, they must also be good with branding and marketing concepts.


“The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.” - Peter F. Drucker
   

It genuinely pains me to say it (and this is not my own invested interest talking), but most non-professionals who try their hand at commercial interior design for the first time often fail to get it right and the consequences can be catastrophic. Running a business is definitely not a game or a hobby. They rarely have the depth of knowledge and understanding of the industry, clientele or the ability to detach themselves from their ‘dream’ to stand back and take an objective view. Informed, balanced, cold economic decisions become secondary to their own excitement and emotion. They simply don't like hearing "no".
The idea of their dream business completely takes over and more often does not fit the social and economic patterns of the location. Make no mistake... This will result in the failure of a business and the statistics of businesses failing within the first few years don't lie.

In this day in age there can be no room for error as the public are more demanding and more selective than ever. As a business it is critical to develop a unique brand which you are asking the public to buy into and reward you with their hard earned money behind the counter. With the vast choice a person has of how to spend their free time, just getting people to leave their house can be a challenge.

It was recently brought to my attention that only 15% of people in the UK select a product or service with price as their primary consideration. Or to put it another way; 85% of consumers do not prioritise price when selecting a service or product.
    I’d like you to take a moment to think about that and what it means, what the implications are and what it says socially about Britain as a consumer retail economy.
    To cut to the chase, if you get the location, visual impact, service and image of your business right... As long as it’s good, excites and inspires the consumer, the product will sell itself. On any given occasion, consumers will happily pay more than the place around the corner just because you communicate with them more successfully on a personal level and provide a lifestyle choice they want to be part of. Desirability conquers all.

In recent years I have seen far too many bars in small and medium-size town locations go out of business or come very close to doing so purely because their vision for their business was overly ambitious for the local tastes and economics. Now, I am not one to ever advise anyone to lower expectations or standards, far from it. We should all set our own bar as high as is feasible, however sometimes we must be realistic and level-headed when it comes to making money and having economic stability. Let me set you a quick example of a case study which I am familiar with:
     
A medium size town in the north of England, still suffering from a seemingly never ending recession. The population work hard to pay their way and hold down a job, yet of course when finances permit (usually payday week!) they like to let their hair down and have a well-earned night out.
   The social scene is mostly traditional formula pubs and lively bars offering a “cheap and cheerful”, fun night. This is the scene and culture because these are the businesses which have stood the test of time for a reason.
There is no question however that consumer tastes have become more refined and occasionally people will prefer to travel to a nearby city to enjoy a more ‘high-end’ social experience. Looking at this fact, it is very easy for a potential bar owner to embark upon a pattern of thought: “Hold up... People travel out of town to cities in order to visit a swanky terrace bar with highly trained bar staff and plush surroundings. Surely if we open one here, these people will stay locally and we’ll make a killing!”... If only it were this simple. That is the definition of 2+2=5.

In a nutshell, any business which is developed around a formula to be successful in a city centre environment will struggle badly in a small town unless it is dramatically scaled back. The local tastes, social patterns and economics simply will not support it. Don’t get me wrong, I admire the ambition but it’s flawed and I have never, ever, seen it be successfully implemented. On the occasions when I have seen it implemented, within months or even weeks, the entire ethos has been changed, scaled back and standards dropped just to survive.

To state the obvious: The fundamental reason why customers travel from a town to a city is because of the change of lifestyle, surroundings, culture, image, the social diversity, the vast array of options. There isn’t just one nice bar or restaurant...There are many nice bars and restaurants catering to all tastes, offering a  new option every time you visit that city. For one night you get the chance to be part of something else, another experience, away from the town you live in every day.
    The point of the above example is to illustrate that you cannot and should not ever set your heart on a concept in the belief that you can apply it to any location you choose. This is so common I cannot begin to tell you. If the concept is already set in stone, agreed with investors and ready to go before choosing a location, your business model has to be flexible to say the very least or you could find yourself in lots and lots of trouble.
   
Think about it, this also applies to physical products: Is there a market? How much to charge? Where to sell it? Public-facing businesses are no different. In fact, the business IS the product.
    Again, for this reason, having an impartial professional on board to evaluate and make creative decisions is paramount. A good designer is not just about making things look pretty, they have to know market patterns, customer expectations and have a firm grasp of economic climates.

Every single available location you consider will have to be matched against questions such as the examples I gave earlier in this piece. If they do not add up, simply walk away or you will be paying (in the most literal sense) for years to come, which in these economic times is just not worth it.
    By all means have a dream and a vision for your ideal venture in whatever industry you choose. We all need that motivation in order to give us the drive to pursue the venture in the first place, but remain open minded and flexible at all times. In my eyes, being a modern entrepreneur requires complete fluidity and the ability to change direction with the market if required in order to survive.

Let’s be honest with ourselves for a moment... Are you starting/running a business as a hobby to feed your own ego (I have met many such people!) or to find a market niche, make money, build a reputation and ultimately be a success? Do you want this to be your livelihood? If it is the latter (let’s hope so); personal ideals, pride and preconceptions may have to be sacrificed for reality, hard facts and figures. You need to meet client demand, not expect potential clients to change their tastes to suit you, because you believe your idea is just too good NOT to be a success. That is deluded, arrogant and short-sighted (apologies if that sounds harsh) and unfortunately all too common.

Of course, in a city location there are differing factors. You can afford to pursue more extravagant, niche concepts for more specialist tastes, after all it is a more culturally and financially diverse market place. Customers will have the disposable income to take a chance an give something a try.
     As long as you communicate the identity and branding of the business clearly and fluently to the client, it stands every chance of being a success. 

In recent years, it is the middle ground which is losing out in our cities. When finances are tight, customers look for either low prices (more for their money) or a one off, high end, special experience. If it’s special enough, they won’t mind saving a little more money (or loading the credit card as is now often the case!) and paying the price.
     The businesses which remain in the middle of the road with the pack, offering the same formula at the same price as everywhere else are going to struggle long term, as the customer base is just spread too thinly and they have no reason to pick one business over another. This doesn’t necessarily mean offering different products (after all, bars for example usually sell the same product… Alcohol), but, more to the point, selling them in a different and more appealing package with a better individual attention to detail.

Make no mistake, consumer expectation is at an all-time high. You simply cannot afford to get the public-facing aspect and interaction of the business wrong, let alone the nuts and bolts behind the scenes, but I’ll leave that one to your accountant and bank manager (unfortunately these people are great with a calculator but know little of fashion, consumer patterns and preferences in my experience…!)

It would be predictable for me to end this by saying how every public-facing business should employ a designer, but I genuinely believe they should. However, every individual and every company has the right to create their own identity to their own vision and go it alone, there is no questioning the satisfaction it brings ‘if’ they get it right. Many do and kudos to them for doing their homework!
All I would question is whether the importance of having complete creative control should take priority over leaving no stone unturned, seeking professional assistance and getting it right first time all for the sake of a designer or consultant’s fee. A lot of my work is consultancy based, paid purely to give written recommendations with no obligation. Sometimes it pays to swallow our pride and accept a little help before taking the plunge into a dog-eat-dog market place such as retail and leisure.
Even if you own a factory or industrial business, the public reception area can speak volumes about your company and its standards to any visiting guest or potential business associate.

We, in Britain, have a very long and proud history of entrepreneurs in all areas of business and industry but the many modern day political, social and economic pressures are making it increasingly difficult to achieve long term success. Design, branding and marketing have never even been a priority to many entrepreneurs (the focus has been exclusively on the product in the past), let alone the physical location of the business but now all are absolutely critical.

You can never 100% guarantee the success of any business, but you can almost certainly 100% guarantee its failure if the basics are wrong from the start.

 Paul Hancock
 (Founder & Director)

Just as a foot note: This piece has been purely about the physical location of a business, the bricks and mortar. Of course advertising, especially social media can play a huge part in creating a buzz and awareness about a new business and where it is located. Informing the potential customer of what you offer and plays a big part in creating an image nowadays, but that’s almost all social media does.
When it comes to a physically located, public-facing business (not a website), Facebook/Twitter/Instagram etc are a fantastic tool but won’t save a badly located or formulated business. They will just generate a few ‘likes’ and followers, cheap advertising/marketing and maybe the occasional fair-weather customer until it closes. Don’t forget, social media also gives a forum for people to tell others how bad your business is (sometimes not even fairly). It can break you as quickly as it can make you… But that is another topic I'll save for another day!