Choosing the right business location is a very important factor in its success. When choosing a business location, carefully assess the right environment for your company.
When starting out, you’ll need to decide where you’ll conduct business. Unless you’re a completely home-based business or online business , this will require buying or leasing a business premises. Each business has different requirements and it’s important to consider your business needs and priorities when deciding on the type and location for your business premises.
For example, a location may be ideal for your business because if suppliers or distributors are nearby or the costs of buying or leasing in the area are affordable and meet the needs of your business. A good location is just as important as your product, employees or marketing. Ultimately, the place you choose to situate your company could determine whether or not your business makes it. So here are a few tips you can follow to help you decide on the perfect business location.
Population: First, you should think about who your customers are and how close they are to your location. This is critical for some service providers and retailers but not so for other businesses. The demographic profile that you have for your target audience will allow you to make this decision.
Competition: Are competing companies close by? In some instances, this can be advantageous if comparison shopping is popular. You might end up catching the excess from nearby businesses if you are situated near an entertainment area or restaurant. Your proximity to other competing businesses could be crucial to your success. Could they provide a benefit to your business or cause a hindrance? Establishing which competitors are in your area and their offering could help guarantee you choose the right location for your business. If there is too much competition then it may be a warning sign to expand your horizons to a new location. There are exceptions to this such as car dealerships who want to be near each other as customers compare and choose the best car deal, hence their close proximity.
Visibility: Make sure your shop front is visible from major roads and can easily be located. Visibility does not mean that you need to be right in the heart of the activity. Situating your business, such as a restaurant, a short distance away from a major shopping mall will mean that you can enjoy the consumer traffic from the mall without having to pay exorbitant rental costs.
Location of Your Home: If you plan to work in your store, think about the time it will take to get there from home. If you spend much of your time travelling to and from work, the commute may overshadow the excitement of being your own boss.