As a business starting off, finding the perfect location is very important. Whether yours is a restaurant or a manufacturing company, where you locate your business plays a pivotal role in the chances of it succeeding. Location may not feature in the top five to-do list items of a new business, because seemingly more important things may be on the forefront. But being in a bad location can be disastrous for many enterprises; it can cause an otherwise great business and management to be suffocated and fail from the start.
With proper research, however, you can maximise the chances of selecting a location that is spot-on for your business. Start by taking note of these six points below in your quest for the perfect location:
- Are the businesses around your chosen location competing with your business or complementing it? It is preferred that you select a location with businesses that complement yours; meaning if you sell hair products, your neighbours should ideally be hair salons.
- What is your proximity to your target market? Your customers should find it easy to access your business. This is also determined by the type of business you run, as some customers may be willing to travel far to access your services or products, such as a spa retreat in the countryside or mountains.
- Does the location match your brand? If you are a high-end supplier of beauty products, it would make sense that your business be located in a more upmarket area of town.
- How safe is the area? You want it to be safe for employees and customers to travel to your business without fear of crime. In addition, you want to be able to keep business property, such as computers and inventory, safe.
- What are the local zoning regulations? Some areas may be strictly residential and so, it may not be legal for you to set up your business there. Contact the local city council to find out which locations are designated for businesses – or how to go about rezoning or attaining applicable consent and licenses to operate your business in a particular location of choice.
- What is the cost of running a business from the location? The cost of rent or mortgages, as well as distances from suppliers can and should influence your decision to choose a particular location. This presents cost, logistical, operational, service and various other considerations.
The location of your business (with a very few exceptions) plays a substantial role in increasing its chances of success. Being near your customers is not enough. There are various factors to keep in mind such as property prices, safety of the area and accessibility for customers, suppliers and so forth. Start with the above pointers to guide you in the right direction, while looking for the right business location.
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