Choosing a Location for Your BusinessEditor
Many things go into starting a business. First and foremost, you need a business model. Next, in order of importance is… you know the answer here… location, location, location. No matter how great your business plan is, if you’re not in the right space, success will be difficult. There are plenty of factors to consider when choosing a place to plant your business. Some of the suggestions listed below may seem obvious, but maybe there is something here you have not considered.
Age: If your model is designed for people in the 25-40 age bracket, settling into an area that inhabits retirees will be counterproductive.
Income: Median family income should be closely examined. As a result, having an upscale boutique or restaurant in an area where families are struggling will not yield the results you are looking for.
Demand: As stated in the advice in the “Age” topic, if you’re setting up shop in an area where the demographic hasn’t a need, you will be chasing your own tail. Furthermore, if you are opening a business where there are many others like yours, you better have something special that sets you apart from the rest.
Neighborhood: Will your business do well with families, students, elderly, or single 20-somethings? Taking that into consideration will determine if you should open in a residential area or near a university. Perhaps opening near a retirement community is where you will thrive. Some businesses do well being near an industrial park. Hence, you will need to think hard about who you want your business to target.
Nothing is more frustrating to a potential customer than not being able to locate a business. Years ago, there was a great restaurant near my home. While it was in a highly-populated area, near a popular mall, it was difficult to find. On several occasions when I was there, people would call asking how to get to the exact location. Too often, people gave up and went elsewhere. The business closed a couple of years later. So be sure where you are located is easy to find.
In addition, consider how easy it is to get to by way of the roadways. There are people that are not willing to drive off the beaten path or on congested roads. Is there an abundance of auto accidents on the road that leads to you? This may be a deterrent to possible customers.
Let’s not forget foot traffic! This could bring you tons of business, depending on what your business is.
Competition: I would have thought staying far from the competition would be beneficial. Upon research, it turns out the opposite can be true. If your “rival” is successful, they’ve likely done their homework. This saves you time and guesswork. Also, you benefit from their advertising and overflow traffic. In addition, you may have the benefit of being the up and coming, new and improved choice.
Counterpoint: If there is a decline in their business, or in the area they reside, choosing a different location would be a better choice. Keeping in mind the number of businesses like yours (as stated previously) is advisable.
Cost: With all things considered, bottom line is going to play a major part in your decision for location. There are no guarantees in business. but you’ll need to do your best to speculate whether your profits will warrant the cost of rent and insurance.
Room for expansion and other considerations: Will you be able to expand the property if you need to? Will zoning for your industry be an issue? How is the layout and will it work for your ideas? Will it take you long to get there from home? How is parking and will delivery drivers find it easy to make deliveries?
The bottom line: Do your research. Seek out a real estate professional that you can trust to guide you. Weigh all your options. Most of all, we wish you much success!