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Where to Locate Your Business

Some experts say that the location of a business doesn't really matter, while others argue that it's essential to the success of the business. In reality, the type of business you're starting determines how important the location will be.

If you are making a product and its distribution is important to the entire operation, location is very important. Yet, if you are focused on service or information, the location is not as important as whether the structure is right for your needs.

Before you do anything, you have four important factors to determine: (1) what you need; (2) what you'd like; (3) what you will not accept; and (4) how much you can afford to pay. A lot of mistakes you make when you're starting out can be fixed later, but if you mess up your location, it will be tough, if not completely impossible, to fix that one.

Obviously, the type of business you are in will play a large part in deciding where to locate it. Business parks and office buildings have a certain amount of retail space available so stores and restaurants that appeal to business tenants can be located nearby. Also, shopping centers attract a certain amount of medical, legal, accounting, and insurance tenants as well as retail facilities. You are not limited to traditional thinking, so consider all of the possibilities before you decide.

A lot of entrepreneurs begin with a home-based business, and move the operation as it grows. Some types of businesses never have to leave the home-based office, such as web-based businesses. Retail space is available just about anywhere you can think of - airports, hotels, stadiums - as well as malls and other traditional retail outlets. Commercial space and industrial facilities are two more options to consider, depending on the type of business you are starting.

If you are ready to insure your business, where customers or clients will need to come to you, here are some additional factors to consider:

  • Cost - Is free parking available? Will you have to charge higher prices in order to pay your rent?
  • Convenience/Safety - Is it close to where your potential customers live or work? Is it easy to find? Is parking nearby? Is it well-lit at night? Can people get into and out of the parking lot easily? Is public transportation available nearby?
  • Zoning - Make sure your type of business is permitted in the area before you sign any lease.
  • Landlord/Management Company - Check up on their record to see how well they work with their tenants. Do they quickly respond to concerns?

Think of your business location as if you were buying a home. Your customers will be looking for a business that they feel comfortable visiting. If you give them what they want, they are likely to return.