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Make this crucial decision with thought, care and research.
Choosing a location is one of the most important aspects of starting a brick-and-mortar business and ensuring its long-term success. Location is particularly crucial for retail stores and restaurants that rely on foot traffic, accessibility, atmosphere and the right clientele.
We’ll share how to analyze your requirements and options to choose a space where your employees, customers and business will thrive.
When you’re starting a business, selecting the right location can be the difference between success and disappointment. If you’ve already completed your business plan and chosen an awesome business name, take the following steps before signing a commercial lease or buying commercial real estate:
Before signing on the dotted line, numerous additional factors will influence your business location decision. Some may not apply to your specific industry, while some will be crucial determinants.
Consider the following factors before making your business location decision.
Beyond understanding where your competitors are, it’s crucial to consider other nearby businesses. Specific business types may complement your offerings, especially if you’re a retail location or restaurant. You may share customers with similar demographics or your neighbors may be excellent allies.
For example, choosing an office location near a deli and a dry cleaner can provide conveniences for your employees. If you’re a florist, nearby proximity to a baker may lead to customer overlap. Collaborating with other businesses in your location is a bonus that can help create a prosperous economic environment for all.
Excellent foot traffic can be the crown jewel for specific small businesses, including retailers and restaurants. Foot traffic can boost the success of your local marketing strategies and help your business grow. Assess your chosen location’s foot traffic by visiting the area at various times to see how the crowds ebb and flow. Will your business benefit from the foot traffic level? If you’re weighing several great business locations, foot traffic may become a deciding factor.
If your business relies on frequent inventory infusions, proximity to your vendors and suppliers can be critical. An inconvenient location may lead to frequent delays and unhappy customers who can’t get the items they want.
Customers and employees must be able to access your location ― particularly if you’re operating a retail brick-and-mortar store. Evaluate any potential location’s on-site parking and accessibility to highways and major roads.
This may seem like an obvious question but consider how the location will impact your business. A retail store’s location may be much more critical than a company’s office headquarters. Consider your customers and employees and how the business’s location will impact them. If the specific location doesn’t matter as much, you can place more importance on things like building amenities and affordability.
If you’re working in the industrial sector or running a business that receives large supplies of goods, it’s best to choose a location with warehouse storage space and easy delivery options for clients and customers. A business that specializes in shipping and holding goods needs specific structural amenities, such as loading docks.
Consider how your clients will utilize your location. If you meet with customers regularly, you need an accessible location with reception areas, waiting rooms and conference rooms. If no clients ever visit, you may instead prioritize things like a robust business phone system and technical infrastructure.
Consider your company’s size when choosing a business location. Your employees will likely have to drive to your location. If that’s the case, is parking available? Similarly, if you’re meeting regularly with clients and customers, you need convenient parking options for them. Sometimes, the most important aspect of a business location is its free, convenient and accessible parking options.
Your location is critical to your business’s success for many reasons:
According to Statista, in-store and brick-and-mortar retail accounts for 85 percent of total retail sales, demonstrating the importance of foot traffic. If your retail store is in an inconvenient or inaccessible location, you could be missing out on a huge chunk of potential sales.
Whether your business deals with customers or is more of an employee-centric office environment, your business location matters. It’s crucial to thoroughly assess how location impacts your operations and choose somewhere that meets your specific business needs.
Depending on your business type, your location should be inviting and professional, creating a positive association for customers and employees alike.
Matt D’Angelo contributed to this article.