We’ve all heard the unsettling numbers that around half of new ventures don’t make it past their third anniversary.
Even established companies can find themselves hamstrung by shifting market pressures, leading to sluggish growth or even insolvency.
In fact, last year saw 8,000 more businesses close their doors than launch.
A sharper focus on your local area might be the secret to safeguarding your enterprise.
You may assume its relevance varies from one industry to the next, but there are countless local factors that often slip under the radar.
With operating costs soaring, discovering strategies to ease these burdens could be vital to your financial well-being.
Choosing the right spot for your operation based on the services you offer is a critical decision that too many startups and expanding firms overlook.
One emerging opportunity lies in newly built housing developments.
Hastily built to satisfy housing targets, these areas frequently lack shops, schools, and amenities.
By opening the first store in one of these developments, you could enjoy minimal competition, albeit with the risk that residents might still travel elsewhere if there’s nothing else nearby to hold their attention.
However, if your offering resonates with the local community then staking your claim early could let you dominate an untapped market.
Even if your only awareness of schools and children is when you look up one week in July and suddenly find more seats on the train than usual, you might be subtly impacted by the presence of schools.
School performance can sway property prices by a notable degree.
Unless you’re an ice-cream vendor or your corner shop lies on a schoolchildren’s route, you might never have considered your proximity to top-rated schools.
Homes near an ‘Outstanding’ school can see their prices rise by up to £15,000.
These rising costs may push up the price of property in the area, but may be a signal that local residents have more money.
Conversely, areas with slipping school ratings often see house prices tumble as families relocate.
If your business doesn’t rely on resident foot traffic, you might actually save on rent by avoiding high-performing school catchments.
By studying local demographics, you could tailor pricing to suit your model as you will have a better awareness of the likely amount of wealth in the area.
Choosing whether to plant roots or expand in areas defined by school quality and resident affluence can make a real difference to your bottom line.
Bear in mind that the simple school grading system will be replaced by a more nuanced framework later this year.
Still, top-performing schools will continue to advertise their successes, so the impact on property values may not be as dramatic as some fear.
We never shy away from exploring all avenues of financial success, even those that might seem unusual.
Our specialist team work to understand your business, your clients, and the economy so that you can always stay one step ahead.
