For Businesses: How to Research & Select the Right Location
Specializes in providing actionable insights into the commercial real estate space for investors, brokers, lessors, and lessees. He covers quarterly market data reports, investment strategies, how-to guides, and top-down perspectives on market movements.
When you open a new business or launch a new branch, getting it right from the start is essential.
You need more than just a good product or service to succeed in business. You also need the perfect location visibility that either drives foot traffic or lets the public know who you are without a second thought.
While we can’t cover here every single aspect involved when choosing a place for your business, here are the most important considerations to keep in mind when selecting the right location for your business.
Why Choosing the Right Location Is Important for Businesses
Location is important when starting a business because the location of the business will largely determine who the customer base will be. For instance, if you’re researching retail space for lease in a rural area, chances are your base of customers will be drivers passing through.
In that case, you may emphasize billboard advertising on the highways leading up to your store so potential customers can be prepared to stop.
On the other hand, if you’re locating that same retail outlet in a highly populated urban area, you may have no trouble getting people in at all but may experience greater competition between other outlets as a result.
In this case, your marketing strategy may revolve around keeping potential customers engaged with your storefront for as long as possible. Perhaps you accomplish this by offering attractive bargain deals for first-time buyers or loyalty program benefits for recurring customers.
Your location will dictate not only your average customer but also your marketing strategy, your hiring strategy, and just about everything else. Choose carefully.
How to Choose a Business Location
Deciding on a business location can be tricky; on one hand, you want to be in a place where foot traffic is high and there’s potential for growth. On the other hand, you don’t want to be so close to competitors that you’re struggling to stand out. The best way to find a happy medium is by doing your research.
#1 – Consider Your Target Market
Take a look at the demographics of the area you’re considering. Are there many people in the target market for your product or service? Is the area growing? What’s the median household income? Who is more likely to shop online versus in person?
#2 – Look at the Competition
Consider the competition. How many other businesses are selling similar products or services? If there are already a lot of businesses like yours in the area, you’ll need to work hard to differentiate yourself. But if there are only a few, or none at all, that’s an opportunity for you to be the first (or only) dominant player in that market.
#3 – Decide on the Type of Location You Need
Think about what kind of environment you want for your business. Do you want to be in a busy city center or a more suburban area? Each has its own advantages and disadvantages, so it’s important to decide what’s right for your business.
One of the first decisions you will need to make is what type of business location you want. There are many different types of business locations, and each has its own advantages and disadvantages. You need to decide what type of business you have and what your needs are before you can choose the right location.
If you have a small business that does not need much space, you may want to consider a storefront. Storefronts are small retail spaces that are usually located in strip malls or other retail areas. They can be a good option for businesses that do not need a lot of space or for businesses that want to be located in a high-traffic area.
If you need more space for your business, you may want to consider a new location. You will need to research local zoning ordinances to see if there are any restrictions on the type of business you can have in your chosen location.
You may also need to find out if any special permits or licenses are required to locate your business in your chosen area.
#4 – Does It Fit Your Budget?
One of the most important considerations when choosing a business location is whether it is within your budget. The monthly rent may be affordable, but there could be hidden costs, such as utilities, upgrades, permits, and insurance.
Consider all of these factors before signing your commercial lease.
#5 – Where Are Your Vendors and Suppliers?
When selecting a business location, one important factor to consider is the convenience of your vendors and suppliers. You want to choose a location that is easily accessible for them so that they can make deliveries quickly and efficiently. By doing this, you can avoid disruptions to your operations and profit-making abilities.
#6 – Accessibility and Parking
When selecting a business location, it’s also important to consider both accessibility and parking. You want your customers to be able to easily get to your store, and you also want to make sure that there is convenient parking available. If your store is not accessible or if parking is lousy, you will likely lose customers.
Consider foot traffic and delivery when choosing a location, as well as whether the supplier has easy access to the store. Pallet delivery, for example, can be tricky if there is no convenient parking nearby.
It’s also important to consider the ease of unloading the pallets if the location has a small parking lot. Avoiding delivery issues will save time and frustration for both the supplier and the team members receiving the product.
#7 – Nearby Businesses
The proximity of a business to other businesses and services can be important when choosing a business location. For example, if a business is located near other businesses that provide complementary products or services, it may be able to draw on their customer bases.
Additionally, being close to businesses and services that potential customers frequent can make it more convenient for them to visit your business while they shop, which may increase foot traffic and sales.
Once you’ve considered all of these factors, you should have a good idea of where to locate your business. By taking the time to do your research upfront, you’ll increase your chances of success in the long run.
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