Whether you are just starting a business or even expanding an existing one, you are likely already aware of the importance of location. Depending on the industry, the location can truly make or break the success of a business, which is why it’s such an important aspect of running a company. However, finding a location that suits your business the most might turn out to be a challenging task, so here are some of the most important factors you should consider to ensure you’ve made the right choice:
Local demographics
Customers are key to business success, and local demographics are just as important to the success of a location. That is why you should consider who your consumers are and how important the proximity of your location is to them. It would also be wise to consider the community. If your consumer base is local, make sure that an ample percent of that population matches your consumer profile, and that the overall environment in the local economy represents a good opportunity for your business to succeed. Think about how the available community resources will serve the needs of your workforce as well.
Foot traffic
Proximity to your ideal consumers is important, but it might not be enough if you’re located in an area where customers have a hard time finding you. You never want to be stuck in a dead spot or tucked away in a corner. Foot traffic is crucial for all businesses unless you operate in an industry that requires a certain level of privacy or confidentiality. For every other company, it’s recommended to track the overall traffic outside a potential business location on different days and at different times of day to ensure the foot traffic volume meets your specific needs.
Possible restrictions
Some areas have certain ordinances and zoning or other restrictions that could potentially affect business. Check for those in advance to ensure compliance. In countries like Australia, where laws are stricter and more complicated, local business owners tend to contact experts in conveyancing from Essendon when expanding to a new business location. Whether the property is being bought or transferred, experienced lawyers can ensure that the business’s best interests are protected in any case. They might help you if you run into any legal setbacks with your new location as well.
Accessibility
In countries across Europe, on the other hand, accessibility is an important consideration and even a legal requirement in many instances. For that reason, local companies always ensure that their business locations are accessible to persons with disabilities and that they come with convenient parking nearby. You should think about prioritizing the same aspects. Not only will a more accessible location help to expand your customer base, but it will also make it easier for employees and suppliers to access the facilities quickly and more efficiently, thus maintaining optimal business processes.
Nearby competition
Ensuring that your customers can easily find and access your location is incredibly important, but all that effort may be in vain if you have too many direct competitors close by that make your job more difficult. But that’s not true for all sectors, of course. Areas in which comparison shopping is common can benefit from competition, for instance, while the hospitality and entertainment industries may catch an overflow from nearby companies. Similarly, opening a business near another, complimentary service could also prove to be advantageous due to the efficiency and convenience for consumers.
Utilities and costs
Naturally, expenses are another vital consideration for all businesses. The rent (or even mortgage) will likely be the largest expense, but you should also think about other costs as they may not always be included in the lease. This means contacting the utility company and asking for a summary of the site’s usage and billing for previous years, learning about necessary security deposits, investing in appropriate insurance, hiring janitorial services, and considering all other location-related expenses that might affect your budget.
From demographics and foot traffic to accessibility and expenses, there are several factors to consider when choosing the right business location. Ultimately, the location you select should be the ideal compromise between cost and market appeal, to ensure success.