How to choose a location for your business
By Parasolla | Updated on Sep 22, 2022
How to choose a location for your business
Location is one of the most important things that you need to consider when you want to start a business especially if you sell to people face to face.
Also, the right location can affect your sales dramatically because it helps you reach your clients faster and get more sales.
In this article, we are going to share with you 8 points you must consider when you want to choose your business location.
1. Business requirements
The first factor and most important one you should consider is the business requirements. The appropriate location is different from one business to another depending on its type and the minimum requirements to run it.
So, you should ask yourself, what your business needs to start and what kind of business you want to begin.
For example, if you want to start a graphic designing company, where do you think is the most appropriate place to start your company?
Of course, the location is not important because most of your work will be online and you don’t need to rent an office in an expensive location.
Another example, if you want to open a shop to sell clothes, the location is very important because most of your clients will be face to face and you should choose a location in a place that has potential clients such as big malls, and Markets.
2. Marketing targets
The marking is the second point you should consider when you want to choose your business location. When we talk about marketing targets, we mean that you should analyze your business location and know if it is appropriate to achieve your marketing goals.
For example, you want to start a restaurant. You should choose a CLEAN location to encourage people to eat from your restaurant. Also, you must choose a place that has enough traffic. For example, you can open a restaurant for fast food close to the university. In this way, all the students who want to eat lunch may choose your restaurant.
So, make sure you choose your business location depending on your targeted customers.
3. Consider your budget
Another thing you need to consider when you choose the location is the budget.
When we talk about the budget, we mean that you MUST have enough money to support your business to rent the right office in the right place.
One of the most important things that make a business successful or not is the location. So, if you don’t have enough money to rent an office in the right location, you will increase your chances of losing your business and failing in the future.
To understand this point, imagine that you want to start a small restaurant in a place that has low traffic!!
Of course, you will get no sales and your business will fail in the future because you can’t make profits.
In conclusion, if you can’t rent an appropriate place to start your business, you will FAIL as it is pretty difficult to make sales in the wrong location.
4. Your business brand
The business brand is another important factor when it comes to the business location. This means you should choose the place depending on your business brand.
For example, do you find someday that one of the large companies such as Facebook or Apple opened an office in a poor place!!
Of course not, because trying to open a store in a poor place will affect directly their prestige and decrease their value in the market. On the other hand, companies that have poor names, start their business in poor places.
So, you should value your business brand and start your business in the appropriate location.
5. The costs of transportation
If you want to start a business that needs products all the time such as supermarkets, you should consider the transportation costs as well.
So, all you have to think about it when you want to choose a store for your business is the costs of transporting the products from the suppliers to your business location as these kinds of costs are monthly.
6. Your employees
Another thing you should think about it when you want to choose a location for your business is the employees.
When we talk about the employees, we mean your ability to hire talented people who can join your company in its location!
Most people prefer to stay close to the city center when they choose their job. So, if you started a company far away from the city, you may not be able to inspire TALENTED people to work with you.
So, make sure you are able to hire talented employees whenever you need to avoid losing time searching for employees.
7. Monthly expenses
Business is all about making profits. So, you should calculate the monthly expenses of your business location.
This means you need to know how much money you should pay for rent, electricity, services…etc.
In this way, you will know if the location is appropriate financially for your business or not. Also, this kind of calculation will help you choose the most appropriate location for your business with the lowest costs.
8. Think about the future
The last point you need to think about it in the future.
When you choose a place for your company, make sure it has enough features to use in the future.
For example, you plan to start a store to sell phones but you want to sell other electronic devices such as laptops and tablets in the future. So, you should choose a store that has enough space for your current and future products.
Thinking about the future is not only about your store, you should also analyze the traffic in the area around you and make sure it will have enough customers in the future.
For example, if you opened a stationary in front of a school, you should be aware that the schools are closed during holidays and you will not get that traffic. As a result, your sales will decrease. So, make sure your business location is appropriate for the present and future.
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