Just about anyone who is considering starting up a new business knows that location is one aspect that is vitally important. In fact, you could have a great business idea but if you set up in the wrong spot, no one will even know you’re there.
The whole “build it and they will come” concept may work great in the movies, but it doesn’t often play out in real life. Get off on the right foot when it comes to location and consider these factors before you decide where to set up shop.
What’s Your Business?
The type of business you plan to open has a lot to do with the location you will ultimately choose. Whether it is a business relocation or a brand new business, matching type and location is of the utmost importance. The location is especially important if your business relies on members of the public walking in and buying products or services.
Basically, if you’re opening up a business that relies on human traffic to succeed, then you must be located in an area with a good deal of human traffic. These kinds of businesses include restaurants, bars, pubs, clothing stores, book stores, etc. Any business where people must come to you needs natural traffic.
For businesses where high levels of human traffic aren’t critical like law firms, manufacturing facilities or accounting offices, accessibility and human traffic isn’t such an important aspect. Just make sure you take the time to consider your business and ask if this location is going to help it or hurt it, before you sign on.
If you are running your business properly then you’ll have a budget for your location. And if you have a budget, you’ll have to consider it before you commit to a location. Think of your business, your taxes, your current and projected sales, and your other expenses when deciding if you can afford a particular spot. You should have a monthly amount all worked out before you even start looking.
You’ll also have to decide if you’re going to rent or if it makes more sense to buy. Start ups are most likely always going to lease or rent, but if it’s a business relocation because the business is growing, you might want to buy the space instead.
How Much Space You Need?
The space you require is yet another factor that’s tied to the type of business you want to start. A used DVD shop might not require too much space, but a car dealership would require quite a lot. The projected growth of the business may also play a factor in how much space you need.
If you’re starting with 25 employees, but project that you’ll have 100 within two years, it might make sense to account for that so a business relocation won’t be necessary too soon.
Imagine a Day In the Life
Before you get too excited and worked up about a particular location, it’s wise to sit back and picture what a real day or week would look like in that location. Will most of the employees have good access to the site? Will the traffic patterns work for or against you and your employees as you go to and from work each day?
Sometimes, the little things are what really determine if a business location is worthwhile or not. Having every factor fall into place only to discover getting to and from work each day is a terror isn’t going to help anyone. Consider every single factor, and you’ll find the location that’s perfect for your business.
Before making the final decision to relocate your business, speak to different commerce centres (example: www.ajaxfirstforbusiness.ca/) to gather more information.