Have you thought about starting your own business? Great!
You may have already decided what kind of business it will be, but from where will you run it from? Have you found a business place?
The location of the activities may not be important for virtual companies and companies that ship with the help of third parties, however, it is essential for physical activities such as restaurants and retailers.
Most entrepreneurs tend to overlook this process as it is a boring and time-consuming task, however, choosing the wrong business location can harm your long-term business performance. It is the most common mistake made by startups, Bad choice of location can be very difficult to solve. Let’s discuss the things you need to keep in mind when you choosing a business location.
Things to consider before choosing a business place.
AUDIENCE
Who is your target audience? How many potential customers live nearby?
Try to answer these questions. Customer proximity can be very important for retailers and some service providers, but not so much for other types of businesses. So, take a look at the general community.
Check if a decent percentage of the population in the immediate vicinity matches your ideal customer profile, especially if you are a local company. If so, do they have a stable source of income that will allow them to purchase your products and services regularly?
Also, check if most people who live nearby rely on jobs in a specific area. This could be negative in the event of an industry downturn.
PEDESTRIAN TRAFFIC
Monitor the amount of pedestrian traffic outside and near your business location at different times of the day (focus more on the morning and evening hours) and on different days of the week to see how consistent the traffic is.
It is important to monitor traffic on both weekdays and weekends because some locations have high pedestrian traffic on weekends but little or no traffic on weekdays. Also, watch out for dead spots. Even the most crowded locations have them.
However, if your business does not accept direct customers or requires a certain level of confidentiality, you may choose an area with less pedestrian traffic. Also, the more crowded the place, the more expensive the rent.
COMPETITOR
Are there competitors nearby? If so, how will you adapt or distinguish yourself from them?
Having a competition nearby isn’t always bad. For example, if you own a pizza outlet and there are 2 other pizza outlets nearby. So you can attract customers from other outlets by lowering your price.
This will only be possible if your competitors are on the same level as you. If they are more established, they probably already give the lowest prices on the market. Being a new venture, you cannot hope to lower prices too much because this way you could face bankruptcy.
But do not worry. You could simply capture your competitors’ overflow when they are full of customers. However, you will still have enough business.
Check which businesses surround you and find out if you can benefit from the traffic of the customers they generate and if these activities could help you in any way.
But if you’re conducting a type of business where competition isn’t good, look elsewhere.
SECURITY / SEFTY
Is the neighborhood safe? The level of security required varies from company to company.For example, a jewelry company shouldn’t be in a popular area for thefts or where there aren’t many pedestrians or vehicles at night.
It would be useful if there was also a police station nearby. Remember that you are responsible for the safety of employees and customers.
AFFORDABILITY
More importantly, can you afford the place? I’m not just talking about renting. Check if any renovations are needed before you can move and, if so, how much it would cost.
Check if is parking free? or is it expensive? Will rental rates and GST make you pay higher prices for products and services? Are most of your employees in another area? If so, what are the travel costs?
CREDIBILITY
What does the address of your company say? Would an address in the center add more credibility and prestige? Are there wealthy customers around you?
The most prestigious addresses are those ending in Mumbai, Pune, or Bangalore. People tend to trust these companies more than others.
SEARCH FOR PAST
Ask about your previous tenants from your landlord or nearby companies. If you are starting the business in a place where other companies have gone bankrupt, you may want to do further research on why this happened.
Doing business in such a place can cause a bad reputation as people may think that your business will end the same way as previous ones.
On the other hand, if all previous tenants were successful, it could be a good sign, but don’t count on it too much for your business place.
EASY TO LOCATE
It is easy to find or is it located in a very narrow building? and surrounded by all different kinds of businesses where your visibility is zero, Is there proper space for your Signboard.
UTILITY THINGS
Make sure the building has electricity, water, air conditioning, adequate lighting, and telecommunication services.
restaurant nearby for your employee, the nursery for employees with children.
Now you know what things to consider when choosing a business location, but where should you go to find one? For this, you can contact us.
Additionally, you can visit the property web site or commercial real estate agencies to get a list of available commercial properties or simply keep an eye on the rental signs while driving.
Summary
As you can see, choosing a business place is not a simple undertaking. There are so many factors that you need to consider before renting or buying office space, production facilities, or warehouses.
However, in the end, it doesn’t matter who says what, if the place doesn’t seem right, then don’t try. After all, it is you who will work there every day, not them. Do your research well before signing any contract for your business place.
If this guide helped you in finding a place for your business place? If so, how was the experience and where did you find out the place? Let us know in the comments section below.
