Nearly 70 percent of American entrepreneurs start businesses from home. As time goes by and these businesses begin to grow, an entrepreneur will have to relocate their company.
Waiting too long to get a brick and mortar location for your business can prevent it from growing. Staying on the upward trajectory you are own will be much easier with an actual base of operations.
Usually, there will be a number of commercial real estate to choose from in an area. Taking the time to devise a location strategy can make narrowing down the list of commercial buildings easier. While finding the right location may be time-consuming, it is definitely worth the energy you invest.
The following are some of the things you need to consider before choosing a business location.
1. Assessment of Population Demographics
As any business owner knows, getting an idea of who your audience is crucial to the overall success of your venture. Getting to know the population demographics of a particular area is important before deciding to set up shop there. There are a number of online tools and resources that can provide you with a breakdown of who lives in a particular area.
Looking at the race, income, and average age of the people in an area can be very helpful. Ideally, you want to choose a location that is filled with people who make up your audience. Failing to do this can lead to you being unable to attract new business in the location.
2. How Much Competition is in the Area?
While riding around and looking at potential locations for your business, pay attention to the businesses you are passing by. Knowing how much competition you have is essential before deciding to move there. Choosing an area that features several businesses just like yours can create a lot of problems.
Going in and speaking with the business owners in an area can provide you with lots of insight about whether or not it is the right fit. Asking business owners how long they have been in the area and what they like about it can be helpful. Leaving no stone unturned should be your attitude when choosing a new location.
Asking a business owner about the amount of foot traffic they receive is crucial. You will also need to find out how long a particular business has been in a location.
3. The Visibility Factor
If you rely on consumer traffic to make your living, choosing a location that is highly visible is your best bet. Trying to attract attention in a location that is hidden from view will be nearly impossible.
A retail-based business needs to set up shop in a busy metropolitan area. By doing this, they can get a lot of traffic, which will increase the chances of them making a sell.
Before choosing a particular location, you need to drive and walk by it. This will show you just how visible the storefront is. If at all possible, you need to find a popular strip mall in your area to set up your business in due to the high level of traffic these establishments usually get.
4. What Types of Amenities Are Being Offered?
Working with a real estate agent is a great way to get access to commercial buildings for rent or lease in your area. When going around to check out these buildings, pay attention to the amenities being offered by the owner of the building in question.
Choosing a location that has lots of parking space and sidewalks is vital. These two amenities will make it easy for potential customers to park and walk to your establishment.
5. Is There IT Infrastructure Already in Place?
Using the power of technology is essential for any business trying to compete in the 21st century. As you look at different business locations, you should inquire about the IT infrastructure already in place.
Finding a building that is already wired for networking can be extremely beneficial. If you are simply unable to find a pre-existing commercial building you like, have a new one constructed is a good idea.
Working with a construction loan company will help you figure out what your options are. You can click here to find out more about these loans and why using them is beneficial.
6. Get Details About the Cost of a New Business Location
Operating on a budget is something you will need to get familiar with when trying to make your business a success. Having a budget in place will help you narrow down the list of potential business locations with no problem.
When inquiring about the cost of a commercial building, be sure to get clarification on what this cost covers. In some instances, paying more for a building that provides maintenance, utilities and security is worth it. You also need to find out what type of modifications the landlord will allow you to make before settling on a particular building.
7. How Far Away is the Building From Your Home?
Driving an hour or so to get to your business building can be extremely draining. Instead of choosing a building that is far from your home, you need to make your commute as short as possible.
Not only will being closer to your place of business reduce travel time, it can also increase your response time in the event of a disaster. Be sure to also consider how close your employees leave to a potential business location before choosing it.
Take Time to Develop Your Location Strategy
Getting impatient during the search for a new business location can lead to mistakes being made. Sticking to a location strategy can help you stay on track throughout this process.
Are you looking for more information about running a successful business? Check out our article on how to increase employee productivity.