A business can have the most amazing services or products, but if it doesn't have a great location, people will just not go.
There are many benefits to having a great business location.
From improved consumer and client interactions to reduced costs of doing business, location is an important part of your business plan.
Here are five reasons why the location of your business is important:
Depending on where your business is situated, the cost of rent and utilities could be higher.
The is a very important factor to consider, as it means that if you choose to rent or buy real estate in a more expensive area, you will have a lesser budget for employees and any other expenses.
If you choose to operate your business from a less expensive, more rural area, you will have more space at a lower cost, and it is likely that utilities will be less expensive too.
However, if your business is located in a more rural area, will customers be able to find you easily, or will it mean that your customer base will be smaller?
Like I just said, if you chose to locate your business away from busy cities to save money, you will also be pushing yourself away from where your customers are.
If you are opening a café, you need to find a location that will bring you foot traffic, for example a busy street in a city, this way you will constantly have new customers.
On the other hand, if you are opening a surf shop, you need to be on the coast, as that is where your customers will be.
Your business needs to be located where your customers are likely to go!
Your business needs to be accessible for employees, customers, and suppliers!
If you are relocating, you need to make sure that the new location is still accessible for your employees.
For suppliers, your location needs to be suitable and accessible for receiving deliveries.
And of course, most importantly, the location needs to be accessible for your customers.
Now, if you want to pay less tax, you can choose a location that has lower tax rates.
In the UK the tax rate is the same almost everywhere, however in the USA, tax rates are different in each state.
If it is important to you that the tax rates are low, before searching for locations, you should look for where tax is low.
If you depend on suppliers delivering stock to your facility, you need to choose a location that makes it easy for your suppliers to deliver stock regularly.
Ensure that the building has an easy to access storage facility for receiving deliveries from suppliers.
Before choosing your business location, ask yourself these questions:
- Does your business need to be accessible for suppliers?
- Where are your customers located? (You need to be near your customers)
- What is the tax rate in your area?
- How expensive are utilities in your area?
- What is the cost of rent in your area? (It needs to be within your budget)
- Will the selected area be easy to access for customers, employees, and suppliers?
Once you have answered these questions, you should have a better idea on where you should run your business from.