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How Do You Choose The Right Location For Your Business?

When you consider Amazon’s recent decision on the new location for their business, it makes you think about some aspects to consider, when making a similar investment of your own. Your location should be consistent with your particular style and image. If your business is retailing, do you want a traditional store, for example? Or maybe you’d like to operate from a kiosk or a cart you can move from place to place? Let’s look into a few aspects of business location and why they matter so much…

1. Who Are Your Customers?

Demographics play an important part in your choice of location. So, consider who your customers are, and, how important their proximity might be to you. If you are a retailer or some service provider, this is a critical consideration. But if you are any other types of businesses, however, this might not be as important. Research and review the community in which you want to establish your business and ask yourself: is  there a sufficient percentage of that population that matches your customer profile? But you should also look into communities that are largely dependent on a particular industry for their economy, as a downturn could be bad for business. In addition, consider any of the work force skills required. Are there people with these skills in the community? With sufficient housing, schools, recreational opportunities, and culture?

2. What Is The Footfall, Traffic And Parking like?

If you are a retail business, then consider where shoppers are likely to pass by, rather than being hidden away. Try monitoring traffic outside of the location at various times throughout the day. Then assess how accessible the facility will be for customers, employees and suppliers. If requiring deliverables, try to establish whether suppliers are able to easily and efficiently courier. You also need to make sure there is convenient parking for both customers and employees. As with foot traffic, you also need to monitor the facility at various times and days, and see how demand for parking fluctuates.

3. Are There Any Competitors / Other Services?

Another important factor you need to take into account is: are competing companies located nearby? As this could sometimes be good. Like for example for industries where comparison shopping is popular, as you can catch the overflow from existing businesses. If a nearby competitor is only going to make your marketing job tougher, look elsewhere. In addition, consider what other businesses and services are in the vicinity: is there any benefit from customer traffic, is there a suitable range of places and restaurants for employees? You might also want to think about the location of other facilities nearby, such as child care, convenient shops, etc.

4. What About The Infrastructure, Utilities And Costs?

You really want to check the building you’re interested in, has the actual infrastructure you need – adequate electrical, air conditioning, and telecommunications services – to support your business requirements and meet your present and future needs. For utilities, check what’s actually included in your rent, as this can be a major part of your expenses. Lastly, verify the medium-to-long-term rental expectations and commitments, so you can mitigate any potential rental rise.

 

Lotuswise Chartered Accountants and Business Consultants can help you and your business succeed. To find out how, please contact us. To also get even more useful business and finance information and tax advice tips, check out our app on Google or Apple stores.

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