Choosing a best location for business is the key to the growth and success of your business. Become aware of what counts as best location and how it all works so you can be a successful business.
Why is Location Important When Starting a Business?
Your business location sets the tone for your business. It adds to what customers think of your business. The business location determines how well you will do. Choosing a location is not a task you should take lightly. You shouldn’t just choose the trendiest building or the cheapest listing. You need to put careful thought into where you want to establish your business. After all, your business location isn’t something you can easily change.
How to Choose a Business Location?
Factors to consider when choosing a best location for your business,
- Accessibility
- Security
- Competition
- Business Rates
- Skill base in the area
- Potential for growth
The main factors that affect location decisions include regional factors, community considerations, and site-related factors. Community factors consist of quality of life, services, attitudes, taxes, environmental regulations, utilities, and development support.
Research The Best Location for Your Business
You’ll need to register your business, pay taxes, and get licenses and permits in the place you choose to locate your business. Where you locate your business depends in part on the location of your target market, business partners, and your personal preferences. In addition, you should consider the costs, benefits, and restrictions of different government agencies. So, always research the best location for your business.
Region Specific Business Expenses
When you calculate your startup costs, take into account the way different expenses might cost more or less depending on your location. Costs that can vary significantly by location include standard salaries, minimum wage laws, property values, rental rates, business insurance rates, utilities, and government licenses and fees.
Affordability of the Business Location
Create a business budget for the impending expenditure before planning any business idea. Budget is the most important factor while choosing a suitable business location. Think of how much can you afford to spend on your business location and find ways for it.
Monthly rent or lease payment is not the only total cost of the location. There are several other costs to the property. Owners need to pay taxes when they buy a commercial building. Sometimes, there are hidden costs to the building, costs like a renovation or install upgrades.
Proximity to Other Businesses
The proximity of your shop to other establishments also plays a huge role when taking into account business location factors. Setting aside the competition, it’s best to choose a location for your business with nearby shops that complement your products or services.
Learn More : What Factors Are Important to Be Considered While Starting a Business?
On the other hand, surveying the area can also open up various business possibilities according to the establishments currently operating within the area. Building a parking lot in a high-density area with lots of establishments that lacks space for parking could be a good and profitable idea.
The location vicinity should also provide convenience to you and to your workers:
- Does it have restaurants and grocery shops for your employees?
- How about a nearby daycare center for employees with children?
- Are banks, schools, malls and other establishments easily accessible?
Easy Accessibility and Infrastructure
Good infrastructure is key to any kind of successful business. Uninterrupted power and water supply, good roads are a few significant factors to consider when choosing a suitable business location.
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Lack of enough parking spaces for the employees, or accessibility for people with disabilities, can be an issue in some locations. Nobody wants their employees to spend hours to get to work. Hence, select a location that won’t cause any problems with daily travels.
Good Location Proximity to the Business Network
If a particular business is manufacturing, it requires a good location and network for a business to produce. Unnecessary commute can be avoided because nobody likes to spend money on transportation than they have to. Analyze before choosing a business location, good proximity to suppliers is key in minimizing logistics costs.
Business Location and Branding
Your physical presentation has a huge impact on your brand image. It’s the first thing about your business prospective customers experience. They’ll get an impression based on the storefront, signage, neighborhood, etc. Your brand image is going to form with or without you, so you might as well take initiative now and brand yourself the way you actually want! It’s much easier than trying to change an established brand image down the road.
Read More : 5 Ways to Grow Your Business Locally
Ask The Right Question to Find the Best Location for Your Business
Answering these questions for each of the sites you’re considering can help you decide on the best location for your business:
- Is the facility located in an area zoned for your type of business?
- Is the facility large enough for your business? Does it offer room for all the retail, office, storage or workroom space you need?
- Are the lease terms and rent favorable?
- Is the location convenient to where you live?
- Can you find a number of qualified employees in the area in which the facility is located?
- Is the facility located in a safe neighborhood with a low crime rate?
- Are neighboring businesses likely to attract customers who will also patronize your business?
- Are there any competitors located close to the facility? If so, can you compete with them successfully?
- Is the business location easily accessible to your potential customers?
- Is parking space available and adequate?
- Can suppliers make deliveries conveniently at this location?
- Is the area served by public transportation?
- If your business expands in the future, will the facility be able to accommodate this growth?
Making these best locations for your business determinations can be as simple or as complex as you make it. Being aware of all the location costs involved with starting your business will do wonders for your ability to weather any storms that might-and likely will-come your way.
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