The common axiom that there are three rules to apply in evaluating real estate – location, location and location – is as true today as ever. The proper location of a business allows the owner to concentrate on those items that ultimately determine success-the delivery of expected goods and services in an efficient, effective and profitable manner.

Whether you are a franchisee, a mail order distributor, or a single office professional within a relevant market area, the location of commercial operations is critical to your business’ success.

In a recent article, Peter M. Birkeland, Ph. D., stressed that the success of franchisees is dependent upon themselves and unrelated to location. He concluded by saying, "...your ability to perform as a franchisee is nearly completely independent of location."

I would argue and suggest that the proper location of your franchise actually enhances your ability to perform as a franchisee both personally and operationally. The proper location can create an image of your organization and increase operational efficiencies.

It can widen your market area by putting your name in front of many more prospective customers on a daily basis, and it can create an awareness of your business that would otherwise take extensive marketing efforts and a great deal of time.

First, let’s understand what is meant by location. The determination of whether or not a location is ideal is business-specific. It could mean being within the proper region of the country for a large distributorship. In such a case, the proper location can minimize transportation costs, travel expenses and in some instances reduce operation expenses.

Location could be relevant within a community for a retail outlet of high-end merchandise. In this instance, the proper location can set the image required to attract the level of buyer in a niche type market.

Location could also be the storefront within a strip shopping center, where the optimal location can be visible from all points of ingress or have the most prominent location in relation to an anchor. Regardless of the change in economies or market conditions, these considerations remain vital.

So how does the correct location make one a better franchisee? According to Corrine Wiersema, owner of an ice cream franchise in Rockford, Ill., "Because my franchise is located in an ideal location, I can focus on the delivery of my product."

Wiersema and her husband have owned the franchise for over 10 years, and they are located in Rockford’s grocery-anchored, 122,000-square-foot, Brynwood Square Shopping Center. Their site is "the most prominent in the center" at its location near the main entrance. According to Wiersema, "About 80 percent of the traffic enters from Mulford Road," a major north/south route through Rockford.

"Each car that drives along Mulford Road has a chance to see that our ice cream franchise is here. Each car that enters the lot sees our place of business. That is not the type of consumer awareness that we could afford to create if our location was more obscure." The fact that two high schools and two large churches are in the area is not lost on Wiersema either.

"We are able to count on certain busy times during certain days of the week based only on the influx of customers into the area." Working with the shopping center management, simple marketing efforts keep inviting a large number of potential customers daily to visit the ice cream franchise. This allows Wiersema to focus on taking care of the customers who find her because of the store’s prominent location versus having to spend resources attracting customers to a less visible location.

Would the Wiersema’s franchise be successful in another, less prominent location? It’s quite possible, but not without additional efforts needed to create the awareness that the more prominent location provides. The time and money saved make the outlet more efficient and additional marketing efforts more effective and, as a result, more profitable.

Ultimately, as Birkeland said, the success of the franchise depends on the operator, the product and the market demand. A good operator can overcome a bad location, but a good operator in a good location will be hard to beat. In Wiesema’s case, the premier location allows her to focus on her product, her facilities and customer service.

Does every franchise need the most prominent location in a strip center? Obviously, the answer is no. But can every franchise benefit in some way from the correct location? Absolutely.

Sales organizations can benefit by centralizing their location within the sales district, minimizing travel time and costs. Distributors can improve delivery times by locating centers near transportation hubs. Professional offices can enhance their image by locating in well-maintained office buildings. Retail stores can be more inviting by being located in well-lit, clean, easily accessible stores. Each of these examples improves operational efficiency, customer service and, most importantly, profitability.

There is a cost benefit analysis that must be done. Premier locations come with high prices. The benefits of location, as with any intangible, are difficult to determine.

I liken it to advertising: the greater the distribution, the greater the cost. It is likewise with location: the better the site, the higher the price.

The immediate effects of advertising are hard to measure. Many would suggest that the true benefits of advertising come with a consistent approach in a variety of formats over a period of time. Whether the advertisements focus on sale prices, professional acumen, new products or services, or a new location, the success of advertising is subject to speculation and often considered an investment rather than an expense.

The same can be said of the additional costs one incurs for an improved location. The approach is longer term and consistent with building awareness and image over time. In the long run, the benefits are hard to place an exact number on, but they are real.

Over the past several years, Starbucks has entered the Rockford market. Walgreens and CVS pharmacies have expanded the number of outlets and Wal-Marts have nearly surrounded the city. Their locations are strategic within the market and in relation to their competition.

Countless hours have been spent with city planners and developers asking for assurances of adequate ingress and egress, stoplights and future infrastructure improvements. The sites were not selected randomly, but rather with great deliberation. Demographics were studied, market analysis was performed, site evaluators were hired and incentives were demanded from local municipalities.

The investments are large, but no more significant than a franchisee investing his or her life savings in a new career. I would find it unfortunate for such a franchisee to discount what the largest companies in the business world find so critically important.

The economy is changing and markets are shifting. Decisions must be made daily and business strategies must be flexible. Owners must be aware of the constant changes and adapt their plans accordingly based on alternatives that should be evaluated regularly.

Now is one of the greatest times of opportunity in history. Each sentence of this article could have been written at any time in our economic history. Location considerations are required elements of running a successful business, period. Some basic rules are never out of date. As such, the rule of real estate still does apply and always will be true...location, location, location.