Choosing a location for your business isn’t as easy as it might first seem. A lot of the time, this is something that is glossed over by business owners, especially in the new digital age we’re living in right now, where remote work and e-commerce have made it tempting to think location no longer matters.
But the truth is, where you base your business can still play a major role in your success, whether you’re running a brick-and-mortar store, an office-based service, or even a hybrid setup. Perhaps the biggest reason for this comes in customer access and visibility. If you rely on foot traffic or want to build a local reputation, visibility is everything, which means existing in a high-traffic area – one that is near your target market – can directly affect your revenue.
Different locations will also come with drastically different costs, not just in rent, but in taxes, utilities, and insurance rates. For instance, if you’re looking for a commercial property in rural Alabama, your commercial property coverage should be a lot less than it would be in a city like Los Angeles or Miami.
Alongside the talent pool, zoning and legal requirements, and your brand identity, the right location can mean everything for a new business looking to find its feet. So how exactly do you choose one that’s right for you? We’ve listed out a few tips below, helping you to navigate the decision with clarity, confidence, and, most importantly, a winning strategy.
Understand Who Your Customers Are
The first thing you need to do is understand who your customers are. How do they relate to your brand? What are they looking for? From there, you can work out where they will be. If you’re in the tech industry, for instance, you might find you need to be in a city – or near a city – with a thriving startup scene, like San Francisco or Seattle. On the other hand, if your business is in retail or hospitality, you might want to prioritise areas with heavy foot traffic and solid tourism numbers, such as Orlando or Las Vegas.
Evaluate All the Costs
It’s also crucial that you look at the full financial picture, including taxes, utilities, local wage expectations, and, as we mentioned previously, insurance costs. A cheap lease in a high-risk area, for instance, might not save you money in the long run. On the contrary, it could be more expensive overall once you factor in higher insurance premiums, frequent maintenance needs, or even lower customer turnout.
Make Sure It Matches Your Brand
This is a rather tricky one, as it’s hard to match a brand – something that is often intangible and built over time – to a specific location. However, the environment you choose should reflect the personality, values, and target audience of your business. Whether it’s a sleek downtown office that speaks to professionalism and innovation, or a cosy neighbourhood storefront that conveys warmth and community, your location should become a physical extension of your brand identity. That will then help customers to connect with your business on a deeper level, and reinforce the image you want to project.
Consider the Talent Pool
Something else we have mentioned previously is the talent pool. When thinking about where to locate your new business, it’s important to factor in not only the customers, but the people who will be working for your business. Access to a skilled, reliable workforce can make a huge difference in your day-to-day operations and long-term growth, so it’s your job to look for areas with a strong labor market that matches your industry’s needs.
Think Long-Term
Lastly, it’s important that you think long-term. You might want to choose a location that suits your business now – and, indeed, that is what you should be looking for – but it’s essential that you keep an eye on the future and make sure you’re picking a spot that can support your growth and evolving needs. It’s likely that you want to build and become bigger, so ensure you’re in a place that can boost that development and won’t ever hold you back.
