Do your research, because getting your business location wrong can be costly. And Choosing the right location is about so much more than finding the place that looks closest to the one you’ve envisioned.
It’s about being somewhere your customers will see you, about being in a competitive location, about staying within budget, and about meeting local and state regulations and laws.
I took it upon myself to teach and review those things you need to keep in mind when choosing a location; offer you advice on where to look for a business location, and also provide you with a few resources we think you’ll find useful as you work through the process.
Before you get into the nitty gritty details of choosing the location,ask yourself the following questions.
How will my get to my target consumer?
What image or brand do i want to convey?
How do you fit in with or stand out from your competitors?
How close do I need to be to my suppliers?
What kind of neighborhood do I want to set up shop in? Is safety very important?
Will I easily be able to find employees?
Do my business need a friendly environment?
Do you have access to an engaged community that is eager to help?
After you must have answer all this questions within your mind, you will have a picture of the type of location you desire to get. Many business today fails due to the in ability to answer this questions. Yes i agree, that without strong financial backup one can’t get it right.
Will you have to do extensive renovations before you can move in?
How much are property taxes? How much is income and sales tax? Balance them out. Could you pay less by choosing to start up in another state?
Can you afford to pay your employees at least the minimum wage?
Do you qualify for any government economic programs or incentives? Might you qualify somewhere else?
Things you must Consider When Choosing a Location for Your Business
Style of operation
This is very important to know if your operation is going to be formal and elegant Or kicked-back and casual Your location should be consistent with your particular style and image. If your business is retailing, do you want a traditional store, or would you like to try operating from a kiosk (or booth) in a mall or a cart that you can move to various locations?
Availability of raw materials
If you intend running a manufacturing or production business, then the nearness or availability of raw materials is a factor you must not joke with when choosing your business location. If your business is not sited close to these raw materials, then sourcing and transportation will reduce your profit margin.
Nearness to market
Another important factor to consider is the nearness of your business to its customers. Are your customers resellers or end users? Answering this question will help you determine the best area to locate your business. Remember that for your business to succeed, you must make it easy for customers to find your product.
For most retail businesses, foot traffic is extremely important. You don’t want to be tucked away in a corner where shoppers are likely to bypass you, and even the best retail areas have dead spots. By contrast, if your business requires confidentiality, you may not want to be located in a high-traffic area. Monitor the traffic outside a potential location at different times of the day and on different days of the week to make sure the volume of pedestrian traffic meets your needs.
Are competing companies located nearby? Sometimes that’s good, such as in industries where comparison shopping is popular. You may also catch the overflow from existing businesses, particularly if you’re located in a restaurant and entertainment area. But if a nearby competitor is only going to make your marketing job tougher, look elsewhere.
The economic policy or system of a particular region may also affect your decision and choice of location. Some economy favor capitalists and others are driven by socialism; where the government controls all businesses. Other sub-factors to consider are government’s policy, fiscal and monetary policy, exchange rates, taxes, levies and duties.
Utilities and other costs
Rent composes the major portion of your ongoing facilities expense, but consider extras such as utilities—they’re included in some leases but not in others. If they’re not included, ask the utility company for a summary of the previous year’s usage and billing for the site. Also find out what kind of security deposits the various utility providers require so you can develop an accurate move-in budget; however, you may not need a deposit if you have an established payment record with the If you have to provide your own janitorial service, what will it cost? What are insurance rates for the area? Do you have to pay extra for parking? Consider all your location-related expenses, and factor them into your decision.company.
If your business don’t deal directly with end users or final consumers, then it’s wise to put your distributive channel into consideration when choosing a location for your small business. The more you make it easier for your distributors to access your products, the better for your business.
As a final note, i want to stress that product accessibility is directly hinged on the location of your business. So when choosing a location for your small business, the following factors listed above can give a hand in decision making.
What are your needs?
Most businesses choose a location that will provide exposure and drive foot traffic or volume to their location. That makes features like parking, pedestrian and vehicular access, the reputation of the neighborhood, and the proximity of other businesses all factors to consider.
However, there are other less obvious factors and needs to consider as well.
Finally, I conclude by telling that Most businesses choose a location that will provide exposure and drive foot traffic or volume to their location. That makes features like parking, pedestrian and vehicular access, the reputation of the neighborhood, and the proximity of other businesses all factors to consider.