4 Factors To Consider When Choosing A Business Location
February 23, 2022
What are some factors to consider when choosing a business location?
- Business Needs
- Growth potential
When you’re starting a business, there is a mountain of things that you have to think about and accomplish. The business plan, the budget, licenses, and permits — all of them are important! But after most of them, at some point, you would need to start thinking about the location of your business. It’s not as crucial as your big idea, business model, and business plan, but it’s influential enough to your success that it should be part of the priorities list.
To help you, we prepared a list of factors to consider when choosing a business location. Keep reading to learn more!
When you establish your business at a location, it would be in your best interests to go for the path of least resistance. Think of the needs of your business when you canvass a business location and try to look for something that fits as well as it can.
If you’re starting a restaurant and you somehow find a location that used to be a restaurant, then the structures and layout would already be there. And it’s not just making sure you already have a good floor plan — you should also check if you have the basics like a good power and water supply. If the location doesn’t fit with your business, then you might have to spend a significant amount of money on renovations that you could have easily avoided.
Another factor that should be aligned with your startup’s needs is the accessibility of the location. How near are you to your target market? How easily could employees and customers reach the location? How far are you from the nearest living areas? If your business relies heavily on transportation or deliveries, it would be beneficial for your location to be near roads or a major highway.
Although some businesses need to emphasize location security a bit more than others, everyone should still do a thorough evaluation of the safety of the location. Find what security measures are already in place and ask the property owner about installing a new security system. At the same time, examine the crime rates in the neighborhood and the history of the place itself.
You’re in this business not just to stay stagnant forever, but to reach your goals. Take a look at your goals and take a look at your location. Would it be able to handle everything you have in 5 years? How well will the location serve you if your startup grows quickly? What if there’s a sudden spike in demand?
Just like how people buy bigger clothes for their growing kids, you need to choose a location that you can grow into. This will also save you some costs for moving to another location when you’re a bigger business.
The many factors to consider when choosing a business location, any of which put in the right conditions, can make or break a business. Being a startup, your business would be more vulnerable. That’s why you should take the time to analyze the factors discussed here when choosing a business location.
If you need more help in choosing a location or any other aspect of your budding business journey, then you’re in the right place! Benito T. Keh, Ferrotech owner, is a seasoned entrepreneurial veteran, and he has decided to dedicate part of his time to helping aspiring business people like you! If you’re interested in what he has to say, contact him here!