Every business owner must figure out a location that will contribute the most to his business and lead to its success. While shopping for a business place one must keep in mind what he must have, what you don’t want and how much you can pay.
Developing this picture can be very time consuming and tedious but it is essential that it gets the attention it deserves. The place you choose to start your business can ultimately decide whether your business makes it or not. Choosing a wrong business location can become a mistake which is irreparable.
A good business location is as important for your business as your product, employees and marketing. So here are some tips to help you decide on how to choose a place for your business which is perfect:
1. Population demographics
You always need to find out that what portion of the total population of the area falls under your targeted consumer base. Information like traffic patterns, lifestyle data of people who come and go in the area, age, professions, household income and other demographics can help you in determining how well the product will sell in that vicinity.
2. Business rates
Cash flow is very important as it determines the viable ability of a business to exist and survive and pay its bills. Therefore, it becomes very vital to research the average business rates including rent, utilities, taxes in the area, etc. to ensure that the premises is affordable.
Simple hidden costs like parking fee, need to be snuffed out before finally committing to a location. When you think about factors on how to choose a place for business, prevalent business rates in the area are important considerations.
A location analysis by looking where your competitors are situated is another factor which can help you in determining what your business place should be. You can get a good idea about what the feasibility of doing business in an area by seeing where your competitors are located.
4. Visibility and Amenities
It is necessary to make sure that your business is located on a location that is visible from the major roads. Visibility does not necessarily mean that the location has to be the heart of the city but it means a place where you can attract a good amount of consumer traffic without paying exorbitant rental costs.
Visibility is vital, but what is also important is that you provide your customers with easy access to your business place. Amenities like parking and gas station should be present nearby the company to make it convenient for people.
Also, it can be situated close to the bus stops or train stations so that people can get to the location with ease. Accessibility becomes a very important factor when you start deciding the best places to start a business.
A location always impact the chances of being affected by a crime. This, in turn, can influence your security premiums and the additional security measures you may need to take to keep your premises safe.
Knowing the chances if crime in the area you are considering is a very important and integral part of the decision making process.
6. Location costs
While choosing a place to start a business, it is important to consider all the costs involved, besides the basic rent. You need to see if it covers the costs of maintenance and utilities.
It is also essential to factor in the additional marketing costs that would occur to enable the customers to find you, if the location is in a remote area. While choosing the best place to start a business modifications, renovation, painting and redecorating costs should also be kept in mind.
7. Skill base in the area
You need to find out what the skill base in your area is while taking into account the employment rates. When you look for a place to start a business, it is vital that that you go where there is a healthy pool of talent.
Employees are a company’s biggest asset, therefore, choosing a location with lacking talent required by your business can be a major downfall.
8. Potential for growth
One of the considerations you need to keep in mind while choosing an appropriate location for your business is that whether the premises will be able to accommodate the business growth and a spike in demand.
Moving premises from one place to another is very time consuming and costly, therefore, a decision needs to be made while initially choosing the location that whether it is for a short term or a long haul.
To sign off
Whilst a perfect location for every business may be different but keeping these certain key points in mind while choosing a suitable location can certainly help you in beating the odds and making way for future success. Do your research, because getting a business location wrong can be very costly. Talk to other business owners and take guidance, work with a mentor and use all available resources, but get this important decision right.