5 Questions to Ask Yourself When Choosing a Business Location
Location, location, location is not just a phrase associated with buying a home. Considering location is just as important when deciding where to set up your business. It will also be one of the biggest decisions you make as a business owner, so make sure you ask yourself these 5 questions before you sign your next lease.
Do You Need to Move?
When making the decision to start or relocate your business, first ask yourself if it’s necessary to move. Can you run your start-up company from your house? Is the location not working for your current business and/or client base? If it isn’t broken, don’t fix it. But if there is opportunity for growth, then continue with the process.
Have You Done Any Research?
Ask friends and family for recommendations. Often our inner circle will have insights beyond ours. This can be followed by looking online and in the paper. Once you’ve narrowed down some choices, visit each area to get a feel for the neighborhood and see what other types of businesses are there. Consider talking to business owners in the area, asking whether they like the location, and whether they would rent again.
Have You Considered Your Clients/Customers?
Narrow down your target demographic and think about the types of locations they would frequent. If you work in retail, consider whether it is visible, and whether the store would receive a lot of foot traffic. If you own a small business, make sure it has a convenient place to park. If many of your clients are elderly, you may want to rethink that building with the steep walk-up.
Is the Rent Fair?
This question is in line with doing your research. Get to know the market average in the areas you are looking. By doing this you won’t end up paying an unfair fee, and will have leverage when negotiating with landlords.
Is It Affordable?
Paying monthly rent adds to your overhead costs –as do utilities. Make sure that you are able to break even at bare minimum, but can preferably still bring in a profit. If it is going to raise your costs, you need to think about where the extra money is going to come from, and whether your customers are willing to pay more for your services.