You already have a business idea in mind. You’ve done the market research. It is a viable business idea, one that will reach new markets and open up new opportunities. But the buck doesn’t stop there. The location where to put your business is a monumental decision that you have to consider. Because no matter how great your business idea is, it wouldn’t matter if you do not have a great location to pair it up with.
Business Location Type
What type of business do you have? You can be more creative and use a co-working space, but that would be no good if you have products to sell. You might even need a storage facility or warehouse. Home-based businesses can operate from your basement or garage. A retail business needs an actual space such as those in malls, airports, free-standing buildings, and special event kiosks. A mobile business is one you can find in festivals and circuses. Food trucks are a good example.
If you are a non-retail business, then an office space in the city is good, too. This type of business does not rely on heavy consumer traffic. Then, there are industrial and manufacturing sites. These are the businesses that need a large warehouse for the goods and items they produce.
That place downtown looks like the perfect location for your business. The question is, do you have the budget for it. You can look for a mortgage broker and apply for a business loan, so you can afford that location you want.
However, always think twice before securing a loan. Make sure that you are going to earn money to pay for the rent and pay off the loan itself. Also, consider the hidden costs of operating your business in that area. Every location has different taxes, renovation requirements, utility upgrades, and economic incentives.
When choosing a location, keep your brand in mind. A high-end restaurant has no right to be in a college town or rural community. At the same time, a thrift shop will not do well in the middle of Beverly Hills, for example. It would help if you thought about what your brand represents and who your market is before committing to a location. Putting your business in a location wherein the market cannot afford your goods is detrimental to your company.
Vendors and Suppliers
You also have to choose a business location that will make vendors and suppliers accessible to you. Choose a site that will make it easy for you to purchase raw materials for your products. If you choose the city, remember that the cost and delivery of the raw materials will also increase. In most rural areas, the transportation cost might be the problem. It’s a tricky factor to consider, but it’s an important one nonetheless.
Safety and Security
The safety and security of the business are not only for your protection. It is also for the protection of your employees and customers. They should feel safe visiting your business. They shouldn’t have to worry about leaving their vehicles in the parking lot. Many businesses don’t put a premium on safety and security, thinking that their security cameras are enough to deter criminals. But burglars often have a way around these safety precautions. You don’t want to risk your business.
The ideal business location is not saturated with your competition. You want a market, but not necessarily one that’s already loyal to a certain brand. Look for locations where the demand for your products and services is high, but the number of competitions is low.
Believe it or not, but a parking lot can make or break your business. If you can afford it, prefer a business location with a parking space for your employees and customers. You should want to make it convenient for everyone to access your business. What if the only option is a paid parking? You may consider validating the tickets of your customers, so they don’t have to spend on parking every time they visit your store or office. This is a nice incentive for your loyal clients.
Starting your business on the wrong footing will produce a lot of problems in the future. It’s important to consider these factors before you even begin to consider renting or buying a property for your business. Shop around for the right business location. Drive around town. Check out the different communities. Make sure to address all concerns before signing the lease.