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How to choose a location for a retail business
Contributed by: Simpson
  • 1. What is the MOST important factor to consider when choosing a retail location?
A) Proximity to the owner's home
B) Landscaping
C) Customer traffic
D) Building aesthetics
  • 2. What is meant by 'foot traffic'?
A) The number of people walking past a potential location
B) Car traffic
C) The number of employees
D) Shipping deliveries
  • 3. Which of these describes a complementary business?
A) Two competing clothing stores
B) A pet store selling electronics
C) A law firm above a bakery
D) A coffee shop next to a bookstore
  • 4. What is 'zoning'?
A) The store's return policy
B) Local laws regulating land use
C) The building's security system
D) The price of real estate
  • 5. Why is understanding demographics important?
A) To get better loan rates
B) To ensure the location's customers match your target market
C) To choose the best paint color
D) To predict the weather
  • 6. What is a 'trade area'?
A) The area with the lowest property taxes
B) The geographic area from which a business draws its customers
C) The area where employees live
D) The area where the business receives shipments
  • 7. What does 'visibility' refer to in location selection?
A) The brightness of the lights
B) The cleanliness of the store
C) How easily customers can see your business from the street
D) The number of employees working
  • 8. What is a 'anchor tenant' in a shopping center?
A) The store with the longest lease
B) The store with the most employees
C) A large, well-known store that attracts customers
D) The store closest to the entrance
  • 9. What is a potential downside of locating in a high-traffic area?
A) Higher rent
B) Better parking availability
C) Lower operating costs
D) More employee applicants
  • 10. Which of the following is a 'pull factor'?
A) High crime rate
B) Poor visibility
C) A unique product or service
D) Lack of parking
  • 11. What is the significance of parking availability?
A) Parking is irrelevant to retail success.
B) Parking reduces insurance costs
C) Parking generates revenue for the store
D) Convenient parking attracts more customers
  • 12. What is the best approach for evaluating potential sites?
A) Choose the location closest to your home
B) Choose the cheapest option
C) Compare multiple locations using defined criteria
D) Trust your gut feeling
  • 13. What is the typical timeframe for a commercial lease?
A) 10+ years
B) 3-5 years
C) 1 year
D) 6 months
  • 14. What should you do before signing a lease?
A) Skip reading the lease to save time
B) Rely solely on the landlord's advice
C) Assume all leases are standard
D) Consult with a real estate attorney
  • 15. What is a 'NNN' lease?
A) Tenant pays rent, property taxes, insurance, and maintenance.
B) A lease that is always a bad deal.
C) Landlord pays all expenses.
D) Tenant pays only rent.
  • 16. What is the definition of 'Gross Leasable Area (GLA)'?
A) The area used for storage only.
B) The total floor area designed for tenant occupancy and exclusive use.
C) The parking lot area.
D) The total area of the entire building.
  • 17. Why is accessibility important?
A) Easy access for all customers, including those with disabilities
B) Only important for delivery trucks
C) Irrelevant if you have good marketing
D) Only matters for online businesses
  • 18. What is a 'drive-by location'?
A) A location next to a highway off-ramp
B) A location with a car wash
C) A location with a drive-through window
D) A location easily seen by people driving by
  • 19. Which location would be ideal for a high-end clothing boutique?
A) Next to a factory
B) Upscale shopping district
C) Rural area
D) Industrial park
  • 20. What type of retail business would benefit most from a location near a college campus?
A) Antique store
B) Luxury car dealership
C) Golf supply store
D) Bookstore
  • 21. What is a 'lease option'?
A) The right to terminate the lease early without penalty
B) The right to extend the lease term
C) The right to buy the building
D) The right to sublet the space
  • 22. What does 'CAM' stand for in a lease agreement?
A) Cash Asset Management
B) Common Area Maintenance
C) Company Advertising Management
D) Customer Acquisition Marketing
  • 23. Which of the following is a 'push factor'?
A) High customer traffic
B) Affordable rent
C) High crime rate in the area
D) Good visibility
  • 24. What is 'market saturation'?
A) Too many similar businesses in the same area.
B) Low customer demand.
C) A business dominating the market.
D) High levels of competition.
  • 25. Why is competition analysis important?
A) To understand the strengths and weaknesses of your competitors.
B) To copy your competitors' strategies.
C) To avoid competition altogether.
D) Competition isn't important
  • 26. What is the meaning of 'site frontage'?
A) The depth of the store.
B) The area of the parking lot.
C) The height of the building.
D) The length of the property line facing the street.
  • 27. Which is usually the biggest impact on sales?
A) Marketing
B) Location
C) Product Quality
D) Customer Service
  • 28. What is a 'percentage lease'?
A) Rent is a percentage of the store's revenue.
B) Rent paid in percentages.
C) Lease based on the Landlord's tax percentage.
D) Rent increases by a fixed percentage each year.
  • 29. What does 'build-out' refer to?
A) Demolishing a building
B) Customizing a space for a specific business
C) Painting the walls.
D) Constructing a new building
  • 30. What is the first step in choosing a location?
A) Find a real estate agent.
B) Define your target customer.
C) Sign a lease immediately.
D) Purchase equipment
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