The Perfect Business Location – What Does it Entail?

As an entrepreneur, it may be tempting to choose a location for your business based on factors that may be positive for you, the founder, but ignore more important factors in the success of starting a business. Often, we are guided by personal issues when deciding on a location, such as proximity to our place of residence, familiar surroundings or proximity to a partner’s job.

In doing so, the traffic connections, the competition or the costs of site analysis are neglected. An entrepreneur who thinks about the essential characteristics of a good location right from the start when choosing a location increases the chance of a successful start-up. Here are some factors to consider;

Do your homework

Before you look at a business space, create a checklist that details and ranks your needs and priorities. It’s easy to appreciate a room that looks stunning at first glance and overlook the cons. What’s more, an experienced landlord or realtor can easily entice your enthusiasm for a particular space and possibly push you to make a quick decision. Even if they are flexible in negotiating the rental terms, the room might still not be suitable enough.

So, it is important to have a checklist with questions about leasing, as commercial leases can be very complicated. A leasing checklist helps you remember what to ask so that you have enough information about the terms and conditions to find out more about the type of lease you are offered.

Which premises do you require?

Would you like to produce something at your location? Are you planning public access? Do you need offices and meeting rooms? Before you start looking for a suitable business location, you need to identify the type of room you require and the purpose it will serve. Think about what you need and how big space must be. Plan sustainably so that you do not have to leave the site after a short time, as your business has grown. Also, clarify in advance whether you may be able to expand the buildings, if necessary.

Transport Connection

If you are after a location where your clients or customers must visit you regularly, it is necessary that your chosen location has a good connection to the highway as well as to public transport. This makes it easier for customers or suppliers who are not located in the same area to find their way to your business.

It is also vital not to settle for an area that is too far out of town, especially if you depend on passersby. Businesses located on busy high streets often have the best chance of being spotted by chance and gaining new customers.

Are there any opportunities?

Settling in a neighborhood that offers good business partnerships and opportunities is a smart move. For example, an alteration tailor, who is located in the immediate vicinity of a bridal shop, or a catering company will be sure to get a good and steady stream of customers: Take advantage of this opportunity and benefit from your neighbors. Strive for joint cooperation. This will create win-win situations for both sides.

What is the competitive situation?

Competitors are good for their own business. They offer incentives and inspire. However, competition should not be too big. When choosing your business location, make sure that you do not disappear under the shadow of many competitors and are just one of many. A market analysis can help you figure out what your local competition is like. Therefore, invest sufficient time in this consideration.

Can you find enough employees?

If you plan to settle with your business in an area that is too far out, not only will it be harder for you to recruit customers. Especially if you depend on trained specialists, you will reach your limits when it comes to recruiting employees. Because young, well-educated people are attracted primarily to the big cities. In order to score as a company looking for workers far from the metropolitan areas, you must be interested elsewhere in employment. For example through additional services such as company vehicles or other advantages.

Are you allowed to do business in your home?

If you are planning to start a business in your own home, you should clarify whether this is possible. In particular, when your home is in a residential area, it may be difficult to obtain a permit. If in doubt, contact a lawyer. Even a tax consultant can give you important tips if you want to use your private space commercially.

How much money can you invest?

Always think about the budget available for renting business premises. It depends heavily on the situation and ultimately determines whether or not you can afford a particular business location.

MindSpace Associates is a leading provider of business coaching services. We offer business entrepreneurship programs to small-to-medium businesses to help take your business to exceptional levels of performance. For further information, contact us or refer to some of our best books for managing a small business.