Location is very important for the future of your business. It depends on the nature of the business, how big the business is, and what products or services you are planning to sell. It factors into how your first-time customers find you, and how often they can visit your business. When choosing the new location you should basically want to be wherever your customers are and making that location as convenient and open as possible for them to come and visit you.
Location is critical when we are talking about restaurants, retailers, and many other service businesses. There are, of course, people who work in a virtual environment and don’t need a good location to draw customers or to lower the expenses. In this case, the location depends on the number of employees, their needs, taxes, regulations, etc. And choosing the right location is just the start. When you finally determine the priorities, the right state, city, neighborhood, and the building, you start thinking about moving to that location. This means buying new equipment and dumping everything you find there. But you don’t want to waste any additional time on this. Just call a rubbish disposal company to help you with the old furniture (because you don’t want to worry too much about the smaller details), bring in the new furniture, and start making some money! However, there is more to it…
How to Choose the Right Location
This is not only about choosing the right building. You need to consider the location. Maybe you are thinking about opening a business in your hometown. In this case, you need to plan things according to the type of business you are planning to start. Ask yourself this question:
“What is the style of my operation?”
- Is your business going to be formal or more elegant? If you are planning to start a jewelry shop or a high-end fashion startup company, potential customers would expect your office or a shop to look more luxurious and they would look for it in the better part of town. On the other hand, a business selling motor parts, or second-hand clothes (for example) doesn’t need a luxurious office space.
- If you are planning to open a wholesale or distributing center, then your customers would normally be retailers. You need to make your business visible and easily accessible.
- Physical shops always need to be based in an area with lots of pedestrians and vehicles. It’s best to base your shop in a shopping mall or on a prominent street. It’s a totally different story if you only sold via a website and customers had no need to visit your shop.
- You also don’t need some special location if you are offering services like cleaning or waste removal. Your customers would have little to no need to come to your premises. You would go to them.
Demographics
- You should know your customers and consider how important their proximity to your business is.
- Know the community if your main customer base is local. Does this community have a stable economic base that could help your business grow?
- Think about the workforce if you need it. Think about the skills your company could use from the community. Think about the skills you need and if those people have the talents you need.
- Will your workers find the infrastructure of the area your business is located in satisfactory? What recreational, cultural, or educational opportunities does that area have to offer?
Visibility
Your customers have to see your business first. You don’t want to have the office tucked away in some corner of the street where the foot traffic is extremely light. On the other hand, if your business needs confidentiality that small, dark corner of the streets seems like a perfect location for your business.
Parking Area
The larger number of parking spots is not only meant for customers. Employees and suppliers also need a place to park their vehicles. This is why you need to think about parking spots before you decide on that right location. Customers and employees need regular parking spots, trucking companies need adequate roads and loading docks if you are going to be receiving your goods on pallets.
Watch for Competition
Competition can be a good thing and healthy for your business. Their customers could become yours too. But, if that competition becomes a nightmare, run.
Ask Around About the History of That Building
If you are, for example, trying to open a restaurant you should ask if there were some other restaurants in the same or surrounding buildings. If there were, and they all failed, you should do a research to find out why. This will give you info if the problem was the location or the business itself.
Rent and Other Expenditures
Rent will take most of your money. However, this is not the end of your monthly calculations. There are other expenses like utilities. This is why you should ask the utility company to provide you with the previous year’s usage and billing for the given address. You should also ask if you need to pay extra for parking or janitorial service. The list of things goes on and depends on the state, town, region, etc.
