How do I size my trade area?

Sizing your trade area involves identifying the geographic region from which your business can realistically attract the majority of its customers, typically defined by distance, drive time, or demographic concentrations.

•Drive-Time Analysis: Map out areas within a 5, 10, or 15-minute drive from your proposed location, considering local traffic patterns and infrastructure.

•Demographic Concentrations: Identify clusters of your target demographic, even if they fall outside a traditional radius, acknowledging that customers will travel for specific offerings.

•Competitor Locations: Analyze where your competitors' customers come from, which can inform your own trade area boundaries and potential market share.

•Natural Barriers: Consider physical barriers like rivers, highways, or parks that might limit customer access from certain directions.

•Customer Surveys: For existing businesses, surveying current customers about their home addresses provides direct insights into your actual trade area. WhereToOpen.ai offers advanced mapping tools to assist in this analysis.