Picking a place to position your business is an essential yet challenging task, and one which requires a lot of thought and calculation to get right.
While location is one of the key considerations, there are a whole host of other factors at play when determining the best option from a broad field, so just how important is this particular aspect and how much weight should it be given during your deliberations?
Businesses need to take the cost of securing a commercial lot into account first and foremost when thinking about location. It is all well and good opting for a spot that ticks a lot of other boxes, but unless it is affordable to lease, then the other advantages it offers will be irrelevant.
Additionally, depending on the type of business you run, you could take advantage of significant cost savings by basing your premises far from the city center if there is no practical reason for being in the thick of it.
For example, office space leasing in Austin is cheaper away from the most built-up central areas, and plenty of smaller firms and start-ups choose to capitalize on this. You can always move into a swanky, centrally located building in a few years time, but saving cash should be a priority first and foremost.
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Customer access is relevant
Another aspect of the location which should sway your choice of commercial lot is how easy it will be for your customers to both find and access your business once it is up and running.
If you are establishing your operations in an area where there is already plenty of foot traffic and a gaggle of other businesses present to draw them in, then this will be less of a concern. If your business is potentially going to be based more off the beaten path, will there be sufficient parking to accommodate customers arriving by car, and what are the public transport links like?
Competitor presence is an interesting conundrum
This is something of a balancing act, but if there are potential competitors in a location that does not mean that it is unsuitable for your organization as well; indeed there are a few good reasons that similar businesses tend to cluster in the same areas.
For one, if competitors are flourishing already, then there is clearly the opportunity for your business to win over their customers and share in the already healthy market offered by a specific spot.
Additionally, if there are a number of different businesses present, catering to different needs, then this can also be appealing, as it means that prospective customers will be drawn in by one need, then might choose to test out your offerings while they are there, giving you extra exposure without the need for any marketing spending.
That is not to say that parking yourself right on a competitor’s front door is always a good idea. Study your unique circumstances and analyze the local market to see if it is capable of supporting such a setup.
Location reputation should not be overlooked
Sure, some businesses are capable of contributing to the gentrification and revitalization of previously unfashionable areas that they choose as their HQ, but this is certainly not a guarantee in every instance.
Whatever your intentions, you should definitely look into the kind of reputation an area has, to see if it gels with your target demographics.
As mentioned, location is just one of the many aspects to build into your plans when starting a business, but it should definitely be high on the agenda if you want your fledgling firm to succeed.