8 Factors to Consider When Picking a Business Location
There’s no doubt that online businesses are thriving. However, there will always be a need for brick-and-mortar businesses. If you are thinking of starting one, you need to ensure that you have the perfect business location. The location of a business is crucial to its success. You can attract or detract customers and staff, for instance. It will also play a big role in your monthly business expenses.
When starting a business, take your time with choosing your business location. You might find a perfect spot very early in the process, but that doesn’t mean you have to sign on right away. Instead, check out some other spots before making your final choice. It is just too important a decision to make lightly.
Here Are Some Factors That You Should Consider When Picking A Business Location
Geographic Location
The physical geographic location is probably the most important factor to consider. If you serve clients in person, you need to have a place where they can get to easily. When you create your business plan, you will need to map out what your target market is. With that information, you should choose a spot that is less than 20 minutes from where there is a conception of our ideal customer for marketing. That way, you will be in close proximity, and your customers can reach you easily. This includes if your business will be in an urban setting. That 20-minute window can include walking time if that’s how most of your customers would get to you.
Accessibility
Accessibility is important even if your business doesn’t deal with customers in person. If you do a lot of shipping, for example, you want your business location close to large thoroughfares and easy to get to for semi-trucks. There should also be room for those trucks to get to you in your parking lot and docking area. The location must also have a convenient place to load and off-load goods. Finally, you will probably want ample parking for your staff and any visitors or contractors that might need access to the building.
Rent
The goal of any business is to make as much money as possible while spending as little as possible. While the geographic location is the most important factor, rent is a close second. However, you should not pick the place with the lowest rent just to save money. You will need to balance that cost with every other factor listed here to come up with the perfect solution. That said, going over your budget for your rent could be disastrous since you are stuck there long-term. If you can’t afford it, your business could be in trouble.
Insurance Costs
Insurance is all about risks. The more risk there is, the more your premiums will go up. Like rent, your insurance cost will significantly depend on your location. For example, some areas are more prone to criminal activity. Your business might have a high likelihood of a break-in or vandalism. You may also be looking at a location near water that could potentially overflow and cause damage. Whatever the risk, the provider will come up with an appropriate price when you purchase insurance for your business property. You will need to balance that cost against the suitability of the building and location.
Zoning Regulations
The fact of the matter is that certain businesses cannot operate in certain areas of any given jurisdiction. Therefore, it’s important that you understand the zoning laws in your area and do not try to open a business illegally. First, check all zoning laws to ensure your business is zoned for the location you are looking at. In most cases, zoning is split between residential areas and commercial areas. If it is unclear, you may need to consult with an attorney for assistance to ensure you get it right.
Security Considerations
There are 1 million break-ins every year, plus many more are the victims of vandalism and property destruction. When you are looking at a new space for your business, assess what security measures are in place. Ask the landlord about security cameras, fencing, locks, and any other security issue you might have. You may not even have cash on hand for your business, but your equipment and electronics can be worth a lot and will be targeted by thieves. You can also assess the relative safety of the neighborhood to determine how likely it would be for you to be a victim.
Room For Growth
While it might be hard to think of investing in a location that is bigger than what you need, it might be necessary. What happens if your business grows in leaps and bounds and you can no longer fit in your space? Sure, you could move, but that is an incredible hassle and cost. Instead, you can choose a location that will allow for modest growth. If you eventually outgrow that over several years, you can count your blessings and move elsewhere. Conversely, if you eventually cannot justify such a large space over time, then you can either try to rent out the unused portion or you can downsize. Make sure you take the time to find out your needs rather than go through the trouble for no reason.
Competition Location
In some situations, you might want to be near your competition. This might sound counterintuitive, but it’s true. For example, shopping malls are full of similar businesses that can do well. The reason for this is that customers like to have easy access to choices. If you are near a competitor, you can both thrive as consumers come to look for certain goods that you provide. Plus, if your business is based on improving an already existing product, being close to the sellers of that product could net you a boost in customers almost immediately.
As they say in real estate, “location, location, location.” Where your business is situated is incredibly important for its success. Make sure you take the time to find the perfect spot to attract customers and grow over time.
