You could have the best business idea in the world, guaranteed to be successful. Open your business in the wrong location and you just turned a successful business into a failing business.
What are some things that need to be considered when choosing a location?
A good business location consists of: Locating close to your customers, Locating in a convenient place for your customers, Locating in a place that your can pay the rent without difficulty
Important Points to Choosing the Best Location for Your Business A high-traffic location is best for businesses that thrive on walk-in sales. A costly location 'pays for itself' if it ensures higher returns/sales. You can cut on other areas of your business so that you can afford a more expensive location. Even if a location is more expensive, it's resale value will increase anyway as your business becomes more successful.
Action Steps to Choosing the Best Location for Your Business Evaluate if the business you want to be in or want to have is dependent on 'walk-in traffic'. If so, then a better location, even if it is more expensive, may be more worth your while. Calculate how much more money is required to pay for the better location. Calculate if the expected sales or profits will be enough to justify the more expensive location.
Ask Yourself these key questions when choosing a location: 1. Is this area where my customers are? 2. Can I afford to pay the rent? 3. Am I in the best location for the money I'm paying? or can I pay a bit more and find a better location 4. Is this location convenient? 5. Is there anything that may keep my customers away? What is the income tax rate? What is the sales tax rate? Do state laws encourage your type of business?
Do you need: Visibility? Parking? Auto or pedestrian traffic? But let's not forget the people involved. Think About Customers and Employees
Will the business location work for you and the way you work? Will you be able to afford it? Does it have the appropriate spaces such as meeting rooms? Will the business location make it easy for your customers to find you? Will the location keep your prices reasonable through lower rent? Will your customers feel safe in the parking lot and sidewalks around your location? Is the location prestigious enough for the clientele you seek? Will the business location be good for your employees? Does it have a break room? Are the backroom facilities, where employees may spend out-of-sight time up-to-date? Will the business location attract potential investors or buyers in the long-term?