Location! Location! Location! It’s all about where the business is located that impacts just how successful the business eventually becomes. The best advice for startups is to choose a location that complements the type of business planned. For example, a storefront location will be needed to attract customers when there is selling to be done. On the other hand, office space in a building is good enough when physical selling is not involved.
Business locations are priced differently depending on the area in which the building is located. High-priced locations attract clients that can pay larger amounts, but what is good for one business may not necessarily be good for another. It all depends on the type of business planned, the traffic that frequents a particular area and the volume of traffic in the area. For example, a high-end jewelry store will not be found in any downtown area, rather in exclusive locales frequented by high society.
There are several factors business owners need to consider when choosing a location to serve as a startup platform for a new business.
After scouting around and identifying three or four possible locations, the first step would be to check on the zoning laws for those areas. This information is available from local county or city offices. Each area has specific zoning laws that permit or bar certain businesses from opening up in the neighborhood. Only when the chosen location is zoned for the particular business being planned can the owner proceed.
Businesses need to be located in places where customers and staff have easy access to the place. People traveling in a particular area will not willingly go out of their way to travel across town just to shop in a new area. The business needs to be located in an area where it can target the right kind of traffic.
Parking is a major hassle and most people consciously choose to shop in places where parking facilities are provided. This is an important consideration for new businesses. Related concerns should center round neighborhood safety and whether parking is free or has to be paid for.
Cost is a significant factor that often determines where the business ultimately gets located. Doing business in the heart of the city is an expensive proposition with high lease rates, taxes, utility costs and other recurring costs that are pegged to locations. The higher the overhead costs of the business, the greater the impact on the revenue of the business. Operating in high cost locations automatically mean higher overheads that need to be included in the prices of the good sold. The burning question here is will the end prices be competitive and will customers want to pay such high prices?
Conduct research on the other businesses operating in a chosen location. Basing a startup platform in a location where other businesses target a similar customer base similar to that of the new business can be helpful. This does not mean setting up in areas where the competition is already well established. Set up operations in a location where existing businesses can complement the new startup.
Conduct research into various factors such as cost of living in the area, growth rate of the economy and the spending capacity of the people in the area. This information provides insight into how profitable a particular area will be. It is worthwhile to checkout new developments in the area such as new homes and office buildings. This is an indication of an expanding customer base.
The final piece of advice for startups is to always keep the customer’s needs in mind when choosing the right location for a startup business.
For more advice in setting up your new business, visit Starthub, your social startup platform