This also highlights the importance of physical location when it comes to merchants or service providers. With many consumers always on-the-go, it’s vital that they can easily find a shop or a store for their needs.
Simply put, business location plays a major role in the success of any organization. In fact, regardless of the type of real estate, location, location, location are the three most important factors for consideration.
But, what exactly is a good location for a business? In this post, we’ll help you answer this question. Check out these seven considerations you need to factor in when choosing a business location!
1. The Cost of Doing Business in that Location
How friendly are the state and the city you want your business in? This is one of the first most important questions to ask as you look for a good company location. And just so you know, Washington, Georgia, and Minnesota are the top three rankers when it comes to the best states in the US to start a business in.
What we mean by entrepreneurship-friendliness relates to how much it costs to run a business in a certain location. Always keep in mind that taxes, both income and sales, vary greatly from one state to another. The same goes true for regulatory requirements.
In terms of specific cities, consider the overhead costs of doing business there. How much does rent cost?
For instance, although experts consider Washington as the best place to have a business in, it also has the highest cost of office space, at $595 per square foot.
Make sure you also check labor availability, government incentives, and of course, city regulations and taxes.
2. Who Your Customers Are
Who are your target customers? Do they consist mostly of college students? Or is your business geared towards car owners and motorists?
Simply put, demographics is critical to securing a good location for business. After all, it’s the customers who will bring in the money you’ll use to pay for that location in the first place.
So, if your products/services are mostly for college students, then it makes sense to set up shop near such educational institutions. On the other hand, if it’s an auto repair/body shop, then you should choose an area with a well-traveled street.
3. Foot vs. Vehicle Traffic
Again, this has something to do with your target audience. For most businesses, foot traffic is essential, but for others, vehicle traffic is good enough.
Let’s use the college student and motorist examples again.
Not all students have cars, so most of them walk and commute. If your business location is too far to walk to and from, then you won’t get enough traffic to drive sales. In fact, no one may even find it!
On the other hand, if your shop has something to do with automobiles, then it’s fine to set up shop somewhere that needs some driving to. At the same time, you need to make sure you provide your customers with parking space.
4. Ease of Access and Parking
Consumers nowadays are all about convenience. This should already tell you a lot about how crucial the location of your business is. If it’s too hassling to walk or drive to, you can already expect low traffic volumes for your shop or office.
There’s also the accessibility.
Will your target market find it easy to drive to? Will they have problems parking their cars? Is it designed for people with disabilities?
All these greatly influence the traffic flow to your business. If it’s not accessible, whether for people who walk or those who drive, you may end up having to close up shop.
5. Your People
Your people – your employees- are as important to you as your customers. As such, you should also factor them in when deciding the location. Whether it’s for a newly-opened business or one that you’ll move.
A too-far location can have a drastic impact on your employees. This may lead to them coming in to work late. It can affect their performance and overall productivity. And, if they find it too hassling or tiring, they may even quit to go find a new workplace closer to their home.
Remember, it’s more expensive to look for and hire a new employee than retain one. Especially when these people play a huge role in running your business.
6. Your Current Business Location
If you’re an existing business owner and you’ve decided to move, then you also should consider the distance from the current location of your business to the new place. Will moving require you to change states? Or will you only move to a neighboring town?
In any case, Find Movers Now suggests that you start shopping around for and comparing professional movers. With thousands of moving companies operating in the United States the only way to really secure a good deal is to compare as many options as you have.
And of course, comparing also lets you know which companies a great fit for your own business and which ones you should avoid.
7. Your Own Preference and Needs
Let’s not forget you – the business owner. Your own preference and needs are as important as the six above-mentioned factors.
You don’t want to spend a lot of your business finances on just the office/shop space alone. Nor do you want to “save money” on a place with a cheap price but is too far to drive to. You also want to make sure you have your own parking space.
The Right Location Can Make or Break Your Business
At the end of the day, the final decision on which business location to choose depends on you. But, so long as you take into consideration all the factors discussed above, you most likely will choose the right one. The important thing is to take as much time as you need to.
And, if you need more business-related tips and tricks to manage and grow your business, be sure to head to our blog. We’ve more strategies for success to share with you!