How to Pick a Business Location
Knowing how to pick a business location can help or hinder its success, even if that business has the right product or service at the right time for the right price with the right promotions. There are some things that must be considered when picking that perfect location.
1. Determine what type of business you are opening.
Are you going to be selling products or services? Are you storing your products in-house or having them drop-shipped? The type of business you are opening will help you pick a business location and will determine the type of building to choose.2. Determine the amount of space you will need.
Do you want to meet your customers at your location or do you prefer to go to them? If you prefer to go to them, you could run your business from your home and car. If your business requires selling a large selection of items or the use of larger equipment, a larger building may be needed.
3. Research the city and state in which you will be operating.
Sales taxes, income taxes, and regulatory requirements vary from state to state, even from city to city. What are the average age, income, education, and marital status of the residents in the community? Check on the rental rates, availability of labor, government economic incentives, and zoning laws.
4. Research the competition.
How close are your competitors? What are the price ranges of similar items sold in that area? What types of businesses are in the area? The surrounding businesses will give you an idea of what type of customers frequent that area.
5. Inspect the physical location of the building.
If your business requires high traffic, make sure that the building is located in an area that is visible and accessible from the streets and for pedestrian traffic. Is there adequate parking for customers and employees? Is the parking area well lit? Is the building accessible to public transportation? Is the building handicapped accessible?
6. Check for expansion possibilities.
Check the building to see if there will be adequate room for expansion as the business grows. Will it be possible to expand the parking area in the future? Knowing how big to start and how big you expect to grow will help you pick a business location.
7. Inspect the building.
Check to see if any repairs are needed. Review the terms of the lease to see what amenities are included, what alterations you will be allowed to make, the cost per square foot, and the length of time for which the building could be leased. Have a professional inspect the heating, electrical, plumbing, and telephone systems to make sure that they are up to code.
8. Consult your budget and sign your lease.
Refer to your financial records and your business plan to make sure that you will be able to afford the building. You can then finish negotiations, sign your lease and open your business.
