Despite the increasing technological progress and digital business, there will almost always be a need for a physical presence, or to keep your employees, store goods in a secure warehouse, or give your customers a branded physical presence.
Business owners should consider many things when choosing a business location such as Availability, Security, Competition, Business value, Skills base in the area, Growth is possible, Access to parking, Ordinances, The building’s infrastructure, Foot traffic, Style of operation and Demographics whether opening an office or shop for the first time or looking to expand into a new location. Entrepreneur Jake Fox reveals the key factors businesses should consider when choosing a new location.
Why Your Business Location Matters?
If you do business that is face-to-face in any way, meaning that you deal with customers or clients, you need to carefully consider how your situation will affect your business.
Your position should be inviting and refined, depending on the type of business you do. This should create a positive association for customers and clients to think positively about your business. There are a few important steps to follow when considering any new business location.
To find the right location, it's not enough to find the right location for your business. How you choose your business location will define your organization.
Consider these Steps before Looking at other factors:
• Do your research
Finding the right business location means understanding local zoning laws, mapping competitors' locations, and maintaining a good knowledge of available (or likely soon-to-be) facilities. You should also research your target market and other benefits or restrictions from your local area or state.
• Consider taxes
Consider the potential state and local tax implications of your situation. Depending on the type and location of your business, it may be better to look outside the county or city to get tax benefits.
• Find out about government
incentives
There are federal and state government incentives for small businesses and certain industries. By choosing the right location, you can qualify for some incentives that may apply to your business.
12 Key Factors to Consider when Choosing a Business Location
1. Availability
Does your business depend on regular deliveries? If this is the case, it is important to consider regional transportation links, especially roads and highways. Prices for renting and buying are usually higher in higher density and more commercial areas, so there is value in looking further from the city, if transport links don't hinder your business too day.
Likewise, if you are counting on high foot traffic, it will be important to ensure that your location is available by car, bus and even train. Don't forget your employees, because a good location is often very important in getting the right people into your business, especially if they are given many jobs and need to consider the pros and cons of each one.
2. Security
Believe it or not, your situation can increase your chances of being victimized by a crime, which can affect your insurance premiums, as well as other security measures you have taken to keep your home. It's safe to say that in business, we all make decisions based on information, intuition, and probability mixed with a bit of luck. But knowing the crime risk in the area you're considering is an important part of the decision-making process.
Examining UK government crime statistics can help entrepreneurs make informed decisions on where to set up a new shop, office or warehouse. Knowing the potential risks of crime can help you prepare better and take better precautions.
3. Competition
Your proximity to other competing businesses can be critical to your success. Can they benefit your business or cause obstacles? Finding out the competitors in your area and what they offer can help you choose the right location for your business. If there is a lot of competition, it can be a warning sign to expand your idea to new areas.
There is a difference in this, as car dealers want to communicate with each other when customers compare and choose the best car deals, so they are close. Similarly, if you have an element of your offer that is unique or offer some new brand, then choosing an area that already has a mature market can be the perfect way to attract customers quickly and establish a presence in new regions.
4. Business value
Money is king! Investment is critical because it determines a business's ability to survive and pay off its debt. Therefore, it is important to check the average business rates, including rent, wages and taxes in the area, to make sure that you can afford the house.
Simple hidden costs such as deposit and whether you have to pay at the bus stop should be covered before committing to a place. Evaluating the cost of living there will save you more money than you can afford.
5. Skills base in the area
Find out about local art foundations - can it meet your needs? Also consider labor rates. If you depend on skilled workers, it is best to go where there is a healthy talent bank. Employees are often the biggest asset of a company.
Therefore, choosing a location without the required license can be the beginning of the failure of your business. Some recruitment agencies will be happy to send you a personalized CV to measure the market, paying only if you eventually decide to interview and hire someone. On the other hand, posting free jobs through online job boards will show you a quick list of workers in a particular area.
6. Growth is possible
Will the building be able to accommodate business growth or increased demand? Moving house is a big hassle and can be time consuming and expensive. A decision should be made as to whether the company you choose is a short-term location or whether you want to stay there for a long time.
Therefore, the change of location can be a very important factor in whether the building suits your business needs. While the perfect business situation is different for every business, covering these critical areas will give you the best chance of beating the odds and setting your business on a path to future success.
7. Access to parking
Consider how the company reaches out to everyone who will use it: customers, employees, and suppliers. If you are on a busy street, is it easy for cars to get in and out of your parking space? Can people with disabilities access the facility? What kind of delivery can you receive; will your suppliers be able to get your goods easily and efficiently? Those carrying small packages should get in quickly; Trucking companies need adequate traffic at the port if you are going to receive cargo and pallets.
Ask about days and hours of operation and access to your waiting area. Are the heating and cooling systems left on or off at night and on weekends? If you're in an office, are there times when the front door is locked and you might have a key? A nice office building at a high price is a bad thing if you plan to work on the weekend but the building is closed on the weekend - or you are only allowed to enter it both air conditioning and heating are not available, so you cook at home.
Ensure there is plenty of convenient parking for customers and employees. As with the road, take the time to check the equipment at different times and days to see how the driving changes. Make sure the parking lot is properly secured and lit.
8. Ordinances
Find out if local laws or restrictions may affect your business in any way. Check exactly where you're considering and what amenities are nearby - maybe you don't want to open a liquor store next door to your daycare.
9. The building’s infrastructure
Many old buildings do not have the infrastructure to meet the high-tech needs of today's operations. Make sure the home has adequate electrical, air conditioning and ventilation services to meet your current and future needs. It's a good idea to get an independent engineer to check this for you so you can be sure you have an objective assessment.
10. Foot traffic
For most businesses, foot traffic is critical. You don't want to be thrown into a corner where potential buyers can pass you by, and even the best selling places have dead spots. On the other hand, if your business requires privacy, you may not want to be in a high traffic area. Check the off-road traffic as possible at different times of the day and on different days of the week to ensure that the number of feet meets your needs.
11. Style of operation
Will your work be good and beautiful? Or normal and comfortable? Your posture should match your style and image. If your business is a business, you need a brick and mortar store, or you would like to try to work from a kiosk or a kiosk in a large store or a car that you can move to different places?
12. Demographics
There are two important aspects to the demographic question. First, consider your customers and how close they are to your situation. For the seller and some service providers, this is very dangerous; for other types of business, it may not be necessary. A demographic profile you have of your target market will help you make this decision.
Again, look at the city. If your customer base is regional, do a sufficient percentage of those people fit your customer profile to support your business? Does the country have a stable economic base that will provide a good location for your business? Be careful when considering countries that depend on one industry for their wealth; Downsizing can be bad for business.
Now think about your employees. What skills do you need and who has those skills? Does the community have the resources to meet its needs? Are there enough houses in the right price range? Will your employees have access to schools, recreational opportunities, culture, and other aspects of the city that are satisfying?
Other Things to Consider when Looking for a Business Location
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By considering your business, what's in your general area, and what features you find important, you can find the right location for your business. Of course, the most important thing is often money. It is important to consider your options and work with local banks as you try to find the right location for your business.
Without going overboard on the rental process, there are other factors and issues to consider in finding the right business location.
• How important is location to
your business?
This may seem like an obvious question, but think about how the situation affects your business. Retail locations vary from company to company headquarters. Consider your customers and clients, as well as your employees, when deciding how a situation may affect your business. You want to choose a place that makes sense to everyone.
• Will your business receive a
continuous supply of goods?
If you work in a manufacturing company or have a business that receives a lot of goods, choose a place with safe storage and easy delivery options for customers and clients. A business that deals with shipping and storing products requires certain facilities, such as loading docks.
• Will you be hosting meetings at
your place of business?
Also, think about how your customers will find your place. If you regularly meet with clients and customers, you need an accessible location. It should also have a reception area, waiting room, and conference room so that you can meet many customers and clients throughout the day.
• Will you, your customers or your
employees need a dedicated parking space?
Consider the size of your business when choosing a business location. Your employees will likely want to come to you. If so, is parking available? Similarly, if you meet customers and clients regularly, you need a good parking option for them. Sometimes the most important part of a business location is the parking options available around it.
• Who will see and interact with
your status?
Consider who will come to your market regularly. You need to plan a place that will meet their needs as well as your needs as a business owner.
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