Choosing a Business Location
If you intend to deal with customers face-to-face, then a wise choice of location can help your business get off to a good start. On the other hand, a poor choice can hinder the success of your business and can sometimes be a difficult problem to fix.
Where should you locate
Where should you locate your business? One advisor will tell you location is absolutely vital to your business success; another will argue that it really doesn’t matter where you are-and they’re both right. How important location is for your new business depends on the type of business, the facilities and other resources you need, as well as where your customers are.
Type of location
How your customers can reach you; are they likely to be walking past or driving? Would you attract more customers if your business was surrounded by other complementary businesses? Would your target market fit the demographics of the area?
It is often a case of the better the location, the higher the premium. However, if you can afford to, it may be in your best interest to sacrifice a portion of your budget originally intended for a non-essential item in order to secure a prime location and ultimately attract more customers.
Consider your present and future business needs carefully; will you need generous storage space, perhaps not immediately, but in the near future? Will you need Internet connection and is that available in the area? Will local zoning laws allow you to operate your type of business?
1. Home based: You don’t need to worry about negotiating leases, coming up with substantial deposits or commuting. However, your room for physical growth is limited and you may find accommodating employees or meetings with clients a challenge.
2. Retail: Retail space comes in a variety of shapes and sizes and may be located in enclosed malls, strip shopping centers, freestanding buildings, or mixed-use facilities.
3. Mobile: Whether you’re selling to the general public or other businesses, if you have a product or service that you take to your customers, your ideal location may be a car, van or truck.
4. Commercial: Commercial office buildings and business parks offer traditional office space geared to businesses that do not require a significant amount of pedestrian or automobile traffic for sales.
5. Industrial: Manufacturing / distribution, businesses need a plant or warehouse facility. Light industrial parks typically attract smaller manufacturers in nonpolluting industries as well as companies that need showrooms in addition to manufacturing facilities. Consider any free-standing commercial building that meets your needs and is adequately zoned.