Choosing the right location for your new business is a major decision that significantly influences its success. Whether you’re starting a new landscaping service or your cheese shop’s success has you thinking about adding a second location, finding the perfect spot requires careful consideration of various factors. This blog explores everything you need to evaluate when selecting a business location.
First things to consider when choosing a business location
You need to start somewhere. Here are two factors to look at first:
- Identify your target market and customer base: Think about the demographics, preferences, and buying power of your potential customers. Figure out if they are mainly in rural communities or urban areas.
- Evaluate the competition in the area: Before committing to a location, it’s important to assess the playing field. Are there similar businesses nearby? If so, decide whether the market is already saturated or has room for your business to grow. You should also analyze the strengths and weaknesses of your competitors to pinpoint potential opportunities and roadblocks.
Financial considerations for selecting a business location
One of the first aspects to analyze is the cost of real estate and leasing options. The price of commercial properties varies significantly depending on the location and demand. Do some market research to help you understand current rates and trends in the area. Additionally, looking at leasing options can offer flexibility and cost advantages, especially if you’re just starting out.
Another important financial consideration is tax incentives and regulations. Different regions and municipalities offer different tax benefits and incentives to attract businesses. Make an appointment with a tax professional who can guide you through the complex tax regulations and help you understand how these could impact your bottom line.
Lastly, you need to examine the potential for growth and profitability. Weigh factors like the local economy, target market, and competition in the area. Are there already two cheese shops within a three-mile radius of your target location? If so, you may want to consider another spot that’s less saturated.
Importance of accessibility and transportation
Have you ever noticed a location in your community where every business seems to fail? Every time you drive by, you wonder, “Why doesn’t anything ever last there?”
Often, accessibility is the issue.
The ease of reaching your business will greatly impact its success. Here are three things you’ll need to dive into:
- Proximity to major highways, airports, and public transportation: A location near major highways, airports, and public transportation hubs can be highly beneficial. It makes it easy for customers and employees to travel back and forth.
- Parking availability: Raise your hand if there’s a business or strip mall you avoid because you dread the parking experience (author raises hand). Having ample parking space attracts more customers and makes their experience more convenient. This is also good for employees as it helps increase job satisfaction and productivity.
- Shipping and receiving goods: If your business relies on transportation, you’ll need to see how easy it’ll be to ship and receive goods. A location with access to major shipping channels and proximity to distribution centers will streamline your supply chain and reduce shipping costs.
Safety and security measures for business locations
Making sure employees, customers, and assets are safe should be a top priority for any business owner.
A key step in evaluating the safety of a potential business location is to research crime rates and security measures in the area. Look into local crime statistics and check with local law enforcement agencies for any information on criminal activity in the neighborhood.
Is a security system needed to lower the risk of business theft? Do a cost/benefit analysis of different security systems and select one that best suits your business needs and budget.
Also note the lighting, presence of emergency services, and general atmosphere of the area. A safe and welcoming neighborhood enhances the overall experience for your customers and staff.
Local support and resources for businesses
Starting that landscaping service or opening that second cheese shop might feel overwhelming at first. The good news is you don’t have to do it alone. There’s help available, you just need to look for it:
- Find local business associations and networking opportunities: Connect with local business associations to unlock valuable networking opportunities. These associations often organize events and conferences where you can meet like-minded entrepreneurs, share insights, and build relationships.
- Evaluate the availability of skilled workforce in the area: Before settling on a location, estimate the availability of skilled professionals nearby. Check if local educational centers offer programs relevant to your industry and review the overall talent pool and job market.
- Gauge access to business support services and resources: Look for locations that offer services such as business development centers, small business administration offices, and chambers of commerce. These organizations provide guidance, help with permits and licenses, and access to potential funding opportunities.
Whether you’re starting your first business or expanding an existing one, Rural Mutual’s Wisconsin-based experts will make sure your business is properly protected. Connect with a local agent to set up a customized plan for when the unexpected happens.
