The biggest determinant of business success is location. You can’t sell to people if they don’t know where you are. Choosing a location isn’t easy. You have to consider the costs, accessibility, proximity to buyers and suppliers, competition, and the background of the area. The factors are explained in more details below.
Unless you own the building, you’ll have to pay rent for the place. How much are you willing to pay every month for the office space? Do your research to find out the rent rates in your area. As you look around, you should know that prime locations are going to cost you more.
- Moving Costs
If you’re relocating from the current office space to a new one, you’ll need to hire movers to help you transport your things. Moving can be expensive especially if you are relocating to another state. If you live in New York, there are plenty of good options around, NYC Movers can give you a good deal if you’re relocating within the city.
Who are your target customers? Are they old or young generations? You have to sell your products near your customers. That’s the only way people are going to walk into your store. Study the demographics of the area before you ask about rental rates. Look at statistical data online. Visit the local council library and ask for the figures. Alternatively, you can look at the competition. Where have they set up shop? If there’s more than one competitor in that location, have your office in the same area.
The other interesting bit about demographics is that customers want a common place where they can buy everything they need. That’s why shopping malls are popular. An alternative could be to have an office space at the mall.
Going for a location with multiple competitors can either work in your favor or against you. If the demand for your products exceeds supply, you will make money. The earnings will be ‘evenly’ distributed among all competitors. However, if the supply exceeds demand, your business will struggle. In such a market, customers have a high sense of loyalty. They only trust those businesses they’ve worked with before.
Unless you want to set up a manufacturing plant, you should always consider the supplier location. Some vendors won’t deliver products in certain areas because it’s too costly and risky for them. They’d rather have you pick up the goods from their warehouse. If the vendor offices are far away, your logistic costs will be very high. That’s why you should choose a location near the vendors.
- History of the Location
Your business has an image to maintain. Therefore, always make sure that you know the history of a place before you rent an office space in that area. If the area has a bad reputation, no one will visit your store. Prospects will make up all kinds of excuses instead of visiting your office. Your business could collapse due to bad publicity.
Choosing a business location is one of the most challenging decisions for entrepreneurs. With so many startups going online, you may be tempted to do the same. However, you should know that consumers prefer a business with a physical location because it allows them to have face-to-face interactions with the company. Use the above tips to find the perfect location for your business.