Choosing a business location is one of the most important decisions you’ll make throughout the existence of the business. That’s why you need to make this decision with as much care and precision as possible.
Many businesses fail as a result of choosing the wrong location. In this post, I will share some tips for choosing the right location for your business. There are factors to consider when selecting a business location. Let’s take a look at each of them.
Cost: It is necessary to consider the costs involved in attaining a business location. This could be the costs you incurred by purchasing an existing building or buying a piece of land. The cost of these should shape your decision about what location to choose. Make sure that you do not exceed what you have budgeted for your business location.
Distance from the target market: To make more sales at a lower cost, it is ideal to choose a location which is close to your potential buyers. The further you are from the people who are willing to buy from you, the costlier and harder it will be to make sales.
Accessibility of the business: When choosing a business location, ask yourself questions like: Is it easy and necessary to get to the location I am choosing for my business? Make sure that your business is easily accessible by everyone who needs to get to it. Do not choose a location that isn’t easily accessible by cars or foot. Can customers easily get to your building?
Are there good roads that lead to your business? Is there enough parking space for cars? However, if the business is one that doesn’t exactly need to be accessible or if the aim is for the business to be confined and secluded, then, accessibility should not be the priority when choosing a location.
Supply of labor/ workforce: When choosing a business location, you should consider the availability of labor to the business. Are there people willing to work for the business where the business is located? Bear in mind that if transportation costs are high, that could be a problem to workers, so it is important to choose a place where labor is close by and therefore, affordable.
Security: Unsafe places are not ideal for businesses. This is why you should consider the safety of the business location while making a choice. Look for places that are secure and stay away from places that have a record of high crime rates.
Closeness to other businesses: Other businesses that are near your business have a way of impacting your business either positively or negatively. If the businesses close to your business have positive externalities (enjoy some benefits which you can be a part of by staying in a close-by location as them), or can easily supply your business with goods or services, then you can consider choosing a location close to them.
Laws and restrictions: Some laws and restrictions apply to certain locations so you must be familiar with those laws and restrictions before making your final choice on whether or not you want your business to be situated in a certain location.
Analyze the Competition: The intensity of the competition in a certain location may be high or extremely low. Before choosing a location, analyze the market competition in the area. If the competition is high or low, find out why and based on your findings, compare if staying in a location will be profitable for your business.
Find out the record of the place: Before choosing a location, find out if other businesses were previously located there and if they had any problems with the location. The history of a location goes a long way in affecting the success of the business which is established there.
Consider future needs: Out of many business decisions you will make, where your business will be located is a decision that can hardly be changed. When choosing a business location, consider how possible the expansion of your business will be when it grows. Make provision for the future growth of your business when deciding where to locate your business.
The location of your business determines how successful it will be. Deciding factors may differ from one entrepreneur to another when choosing their business’s location. However, the tips shared this post will guide you on the crucial elements to consider when choosing a location for your business.
Esther Alu, the Founder of TheAceBusiness.com is an entrepreneur who writes step-by-step guides for starting several business ideas. She is constantly learning and discovering effective ways to help her readers launch and grow successful businesses.