You might have already heard this before, but it’s so crucial that it warrants more repeating—location is one of the most critical factors in your business’s success. Choosing the right location is a matter of life and death for your business because if you place it in the wrong spot, you’re more than likely to fail.
Of course, it’s not easy to find the perfect spot right away. You’ll have to hone your search skills, learn all you can about any potential locations for lease, and be prepared to deal with the challenges of the business world.
What factors do you need to consider in choosing a location?
Before you decide on the location of your business, you need to know figure out what factors will affect your final decision. These are some factors you need to think about:
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Target clientele:
Who are your customers likely to be? Young families, affluent retirees, or blue-collar workers? When you know who your customers are, you’ll know where to look for properties that will best fit your commercial space.
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Industry of your business:
What industry will you be in? Retail? Manufacturing? Services/consulting companies need different sized spaces than retail stores do. Knowing what type of space you’re looking for will play a prominent role in finding the right location.
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Accessibility:
Where is your business located? Is it easy to get there? If you’re starting a transportation business, an ideal spot is near major roads and freeways. If you are in the business of providing daycare, look for a place near residential neighborhoods where parents will need childcare services.
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Location demographics:
What location is the most beneficial for your business to flourish? Will you need a big, open space to store your products or do you prefer to be in a congested city center? Knowing the answer to these questions will help you narrow down the list of potential locations.
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Traffic counts:
How many potential customers will pass by your storefront every day? This can make all the difference in attracting potential customers. But of course, this number is highly dependent on the type of business you’re running.
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Rent levels:
Is the area you prefer too expensive for your budget? Or will it be too cheap and not give you any room to grow? If you’re planning to expand your business in the future, look for an area with low rent rates.
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Availability of relevant services:
How close are you to healthcare facilities, schools, restaurants, grocery stores, etc.? What kind of services are appropriate to the kind of business you’re planning to start? If you need to be close to a hospital or healthcare services, look for an area with medical facilities.
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Competition:
Are there already other businesses in your chosen area? If so, what types of companies are they, and how will they affect your company’s success? When you look for a potential location, you need to know who the competition is and how you will differentiate your business from theirs.
What to expect during the search
Once you’ve determined what factors are most vital for you to consider, you need to start looking for possible locations. It’s best to create a list of requirements and then cross out places that don’t meet those criteria.
You should also look at the options that you won’t normally consider. For instance, there’s a cheap commercial space wide enough for all your equipment, but it has a risk of mudslides because it’s near a slope. In this case, you might want to consider the cost of having a retaining wall installed because it will be cheaper in the long run.
Or you can consider building a new commercial structure that your company can call home if you prefer buying a property instead of leasing a space. This way, you’ll be able to design a building that perfectly suits your needs.
How to know if you’ve made the right choice
After you find a location that you want, your realtor should help you go through the potential steps involved in purchasing the property. In most cases, you’ll need to meet with a lender and secure a business loan so you can pay for it. But there are some cases when you can purchase the property outright without going through several intermediaries.
Once you’ve finalized the purchase, the next step is to get to know your neighbors. This will be the first step in creating healthy business relationships that are mutually beneficial and can last for a long time. By being friends with your neighbors, you’ll have the opportunity to prevent any conflicts before they happen in the future.
In an increasingly competitive world, it’s more important than ever to make sure your business stands out. One of the most effective ways to do this is by finding the right commercial property for you and your business.
