Choosing the right business location is crucial for the success of your company. Therefore, it is essential to know how to pick the perfect place. In this article, entrepreneur Vinod Ramchandra Jadhav shares nine factors to consider when looking for a business location.
It only makes sense that you begin your search for the perfect location for your business with a list of properties that fit within your budget. That’s not to say that affordability is the most critical aspect of a potential site. Some of the other characteristics we will discuss, considered in aggregate, might outweigh what you think you can afford. But, starting with rent or mortgage that fits nicely within your business plan’s ongoing costs column is a great way to start.
It’s essential to understand who your customers are and how they will travel to you. When thinking about accessibility, consider how easy it will be for your customers to come to your location. For example, are they coming via a freeway system from miles around? If so, look for accessible freeway entrance and exit points. Or will they walk from an adjoining neighborhood? Do they like to use mass transit such as light rail or bus service?
If you are just starting out and building your clientele, it would be wise to serve an area not already served by a larger, more established competitor. If, on the other hand, your business offers what others in your industry can’t or don’t provide, you may want to stay close enough to your competitors to win away some of their customers.
Think about the safety and security of your customers and staff. No one wants to enter what they perceive as an unsafe neighborhood if they don’t have to. Of course, rents will be lower in high crime areas, but it may not be worth it if the district’s reputation keeps customers away.
After considering the accessibility concerns discussed above, think about the convenience of your staff. You can attract the employees you want if you have a convenient location for them. You, too, will be happy you found a site close to where you live as you travel back and forth frequently.
Population and demographics
Your ideal location will be within easy reach of many people who are likely to become customers. For instance, if you cater to young people, look for a location near apartments and walkable neighborhoods. On the other hand, if families are your target customers, begin your search in the suburbs.
Be sure to check out the availability of services you will need to make your business flourish. Ensure there is plenty of cell service in the area and reliable water, sewer, trash, and electrical services.
Consider the skills you need to staff your business. If you’re running a high-tech company, search around universities and other technology businesses. If you are looking for mid-career blue-collar professionals, they will be attracted to work for a business near middle-class neighborhoods.Future Plans
Finally, don’t get blindsided by your city’s future development plans. A new freeway under development, for example, can pose opportunities for growth in undeveloped areas. Likewise, if your city plans to rezone a place near your location, it could harm your business. Check with the city’s planning department to see if there are any imminent changes.
There is always some risk in choosing a location for your business. However, when you do your homework and learn all you can about your customers, who they are, where they live, how they travel, and their existing options for your product or service, you can build a list of potential sites that make sense for your company.