When you’ve decided to open a small business, one of the first things you have to do is choose your location.
A business location is crucial. It’s right up there with what you produce and how you build your brand, in terms of importance when getting started. There are numerous factors that you’ve got to consider if you’re going to be successful, but when you’ve got opening a business on your mind, it can be kind of overwhelming.
That’s why we’re going to give you a hand. Today, we’re going to tell you everything that you need to think about in terms of your business’s location in order to make it a success.
What Is Your Business Model?
One of the things that you’ll do before considering locations is to figure out what it is that you do. Different business types will thrive in different cities, neighborhoods, streets, etc., so you need to do some research to figure out where your business is needed and whether or not it’s wanted.
You don’t want to open a small clothing consignment store in an industrial area. That would be better suited on a street with a lot of foot traffic in a hip neighborhood. Likewise, you wouldn’t want to try to put a warehouse in a hip area where real estate is smaller, more expensive, and you don’t need to benefit from foot traffic.
Figure out what your business is first, then let that dictate what type of location is most ideal.
Look At Demographics
Next, you’ll want to look at your target demographic and measure it against the demographics of the locations you’re surveying. At the end of the day, you want to create the healthiest environment for your business to thrive in. If you’re looking for a local customer base, having the right customers around is paramount.
Cost of Location
What can you afford? You might have the perfect location in mind, but if the cost outweighs the benefits of being there, it could spell the end of your business before it even gets started.
For that reason, you should have a few different locations in your back pocket. Even if you can’t afford your ideal location now, if you start in a more up and coming one, you might be able to expand or relocate in the future.
Arguably the most important thing to consider is the presence of competition in a given location. You don’t want to open up shop a few streets over from a direct competitor that’s more established than you are. Find an area where your business is able to stand on its own two feet.
The Building Itself
Once you’ve found a great location, you just need to find the perfect building. No building is going to be perfect, so you have to weigh the state of the building with the actual location. Even if it’s in bad shape and an insurance liability, you can always fix it up.
Ask yourself questions like, “how much money will it take to repair?”, “what is flood zone AE”, and “can I do the repairs myself” and create a pros and cons list to determine if it’s the right place.
Making Compromises on Business Location
It’s unlikely that you’re going to find a business location that satisfies every one of your requirements, so create a list of priorities and let that dictate which location you choose. A business can be successful due in part to its location or in spite of it, so choose the best one you can and get to work making your business a success.
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