Chapter 9 - Business Location
Choosing A Business Location - A Good One Is Crucial

Choosing A Business Location

Choosing A Location Business Is Common Sense: A Suitable Location Is Big Step Towards Success.

When you buy a home, you are told the thing to look for is location, location, location.

The same is true for buying or leasing space for you business. Finding the right business location, at a price you can afford is an essential step towards a profitable business.

What's In a Location?

For a home, the location is where you live. For a business, it is where you work.

Depending upon your type of business, it can be where your customers come in to speak to you, where they shop, where they dine – ultimately, it is where your customer receives your product or service.

Finding the right location is more than finding a building. There are many factors to consider.

At the State Level

Every state has different laws and regulations and these can greatly affect how you do business. For instance:

What is the income tax rate?
What is the sales tax rate?
Do state laws encourage your type of business?
Though most people want to start a business in their home state, if the state laws make your business venture tough, you may want to consider moving.

What About Your City?

Once again, most people want to start a business where they live. Who wants a commute to another city? However, there are times that this might be beneficial.

You will want to look at when Choosing A Business Location:

Rent
Availability of labor
Taxes
Regulations
Permits
Zoning
Economic incentives

Once you've decided that the city is ok, you need to narrow it down even farther and look at the part of town to determine if the area agrees with the image of your business.

For instance, you would not want a restaurant in a manufacturing area of town, even if the building was at a perfect price.

Finally, you need to look at the location in relation to the actual street. Do you need:
Visibility?
Parking?
Auto or pedestrian traffic?
But let's not forget the people involved.
Think About Customers and Employees

Every business has different needs and has different people dealing daily with your business. When finding your location you will need to consider them by asking the following questions:

Will the business location work for you and the way you work? Will you be able to afford it? Does it have the appropriate spaces such as meeting rooms?
Will the business location make it easy for your customers to find you? Will the location keep your prices reasonable through lower rent? Will your customers feel safe in the parking lot and sidewalks around your location? Is the location prestigious enough for the clientele you seek?
Will the business location be good for your employees? Does it have a break room? Are the backroom facilities, where employees may spend “out-of-sight” time up-to-date?
Will the business location attract potential investors or buyers in the long-term?

Finding the right business location is more complex than looking at a building. Look at these factors and determine your priorities.

You may not be able to find a building that meets every single criterion, but the closer you get, the better your business will be.

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