How to find the best business location
Got all planned for your business idea but still finding a business location that would be right for your company? Well, your business has to be in the area where you can market your products and earn a lot of reputation and profit. One of the leading theories that are taught in every marketing course is the four “P’s.” These four things we are talking about are – Place, Promotion, Product, and Price.
Place over here is always the location or the distribution which is where the customer decides and ultimately takes your service and product. In short, it is the location of your business that matters at the end of the day. Even though this does not matter for those who work virtually, or who is running the business and from where, it is vital for having your company registered in the right place mostly for the retailers, restaurants and even many service businesses.
Facetiously, even though finding a business location is essential and most permanent of the four P’s, it is something that is the most neglected aspect when starting a business. This is also one of the main reasons why it is highly vital to find the right location for your company since it would have a significant amount of influence on the overall performance of the business.
Finding a business location is not just about selecting a building. And if you want to succeed till even after your company moves to your future generations, it is important to look at the big picture and this means you cannot just look for buildings in your city and rent it to set up your company.
Here are some things that you should consider in the big picture:
Is the state in which you live a friendly one towards entrepreneurship and does it have a tax-friendly environment? Every state has its individual sales taxes, income taxes, and regulatory requirements, and it varies from state to state. You need to check if the environment is the right one for your type of business.
In case you have already set up your business in your state, and it is not the right place, it is time you start finding a business location that is right for your business. Check out the nearby states or all the states in the country to differentiate what benefits you get by setting up your business there.
From the government economic incentives, regulations, taxes and the availability of labor to the rent and many other costs, the prices vary a lot from city to city even within the same state. You can find a small town that would be the best place for your business regardless of the other cities in that state. You can cross check the Entrepreneur Magazine and Under 30 CEO to see the yearly list of the Best U.S. Cities for Small Business.
Part of town
How can people reach the city in which your business is there? Moreover, is the town compatible with the image of your company? Have you checked out the rent for that place, since every area in a city has a different lease amount? It is essential to keep these points in mind when finding a business location.
Location relative to parking, streets, and other businesses
Does your business have to be near the automobile traffic or the pedestrian? Or would your business do better if it is close to the similar companies to draw the clientele for helping your company? For instance, if you are opening a store for sports gear, finding a business location that is near the gym would be the right one for you.
Type of location
Are you looking for a warehouse, retail or office space? Out of the three, the retail one is normally the most expensive one.
Finding a Business Location
In finding the right location for your business, there are a lot of factors that have to be considered. Even though the cost factor is the topmost consideration, there are many other factors that would affect the business.
Here are 12 things that you need to consider while finding a business location. As yourself who is the location going to be important for and would the location be a major factor for:
The location has to work for your customers, or else your business would not run at all since no customers are equal to no business.
Other than the customers, it is obvious that the office space has to work properly for you, else the business would not work again. In case you do not find the place to be right for you, take time out to look for another place that would make you feel comfortable. Keep in mind that it is you who is about to work in the place, so you need to be comfortable and feel positive in this place you choose for your business.
Potential buyers or investors
You might not be thinking about this yet, but if you ever need some investment for your business and go looking for potential investors, you need to ensure that the place you are finding as a business location is the right one. The potential investors are looking for a long-term value of the business and would see the location before they put their money in your business, making it an important consideration.
Even though this point does not seem like an issue, but in reality, the strategic partnerships take place mostly when the partners are in the same locality and near the business location. This is also the reason why some area become a hub for a specific type of business or industry like the Silicon Valley which is a hub for the tech industry.
Yes, this point is important too. Even though this point might not become a critical point in the beginning mostly when you do not have employees, it would become later on when you need the professionals to join your company, and your location would affect the type of experts or if any experts come to work with you. This is a reason why finding a business location that is right for your company is something important.
The other points that matter a lot and should be considered as well are:
A lot of cities have stringent zoning requirements, which is why you need to check properly before you choose the location for your business by asking the government if your company is allowed to be in that place or not. You do not want to end up in a lawsuit due to choosing a restricted area to commence your business.
It is obvious, that you would choose this based on your business type. If you are opening an office, you would not like traffic and if you are opening a restaurant or retail shop, you would love traffic since it would help you bring in more customers. Keep these in mind when finding a business location for yourself.
This is an important thing for both the employees and the customers who would join your business. Do you have proper security on your premises and is the parking lot lit adequately? Ensure that the place you select when finding a business location is safe for anyone and everyone.
Above all, can you afford the place that you have selected or you have in mind? Other than this, consider if your customers or employees can afford it as well. For instance, is the rent too high that you might have to charge your customers more, or is the parking lot expensive? Even though these things are not that much of an issue, but it is something to consider since you might not get many customers if you charge a high amount for what you are offering.
Moreover, have you checked the taxes for that place while you were finding the business location? The sales taxes and income taxes are different in every state and sometimes also vary from city to city in some places. Keep all these in mind when selecting the location.
Depending on your business you might need some specific facilities in the place you want your business to be located such as a specialized wiring or a high power consumption wiring. Does the place have a meeting space that you need for your business? Or the internet tower for the best internet connection in the state? Check out all of these things while finding a business location.
Would the location that you are about to choose, add credibility to your business? Would the wealthy clients support your company that is located in their neighborhood? This is the reason why virtual offices exist and many startups tend to first use a virtual office address before they move to that place where they then set up their business with the funds they have made. Make a smart choice while finding a business location so that you do not have to struggle in changing locations every 4 to 6 months.
The location that you are looking at – is it easy to reach there and does it have ample parking space for the clients that would come in? Consider what your specific clients would want as it should be convenient for them and they should be able to find the place easily as well.
With all the points mentioned above, you can see that finding a business location is not something simple if you want to make an informed decision. It is important to figure out what priorities that you have and keep your mind open for every option available to see which one fits the best as per your considerations.
Do a lot of research and do not restrict yourself to just nearby states or one state. Move around and check everything everywhere. Check out the place personally instead of depending entirely on real estate planners or the reviews from known people. You can judge the place when you go around finding a business location for your company yourself.
Ensure that you have kept all in mind before you decide on choosing the location for business. This location would let you know if your business would grow and how fast it would grow. Nevada and Delaware are two of the top states in regards to providing a business friendly environment.
Check out the details about these two states, and if you like them, you can contact Inc Paradise to have your company registered there with a virtual address at first (if needed), or move there and incorporate your company to begin business directly in that state immediately. Visit to get details on this!