Ironically, while “place” is often the most permanent of the four P’s, it’s also often the most overlooked, which is why finding the right location for your business can make a huge impact on its performance.
How to Choose the Right Location for Your Business
Finding a place for your business is about more than just choosing a building. You also need to consider the location. Perhaps opening your business in your home town, or even your part of town is a given, but you consider the big picture. Here
State: Income taxes and sales taxes vary greatly from state to state, as do regulatory requirements. Is the state you live in friendly to entrepreneurs? To the specific type of business you want to run? Now might be the time to consider a move if it isn’t, or possibly to open your business in a nearby state if you live near a state line. City: Rent and other costs, availability of labor, taxes, regulations, and government economic incentives can also vary greatly from city to city, even within the same state. Or maybe a small town is the perfect spot for your business. Entrepreneur Magazine publishes an annual list of the Best U.S. Cities for Small Business. Under 30 CEO also has a list of the best cities for young entrepreneurs. Part of town: What kind of commute is involved? Is the part of town consistent with the image for your business? Rent varies greatly according to location. Location relative to streets, parking, and other businesses: Do you need to be visible and/or easily accessible to pedestrian and automobile traffic? Will being close to businesses that draw a similar clientele help your business? For example, a sporting goods store or health food store might do very well next to a gym. Type of location: Do you need office space, retail space, or a warehouse? Retail is generally the most expensive of the three.
12 Factors to Consider in Choosing Your Location
There are many factors to consider in finding the location for your business. While cost is obviously a major consideration, you must also think about these 12 incredibly important factors that’ll affect your business. When you’re in the process of finding a location for your business, think about for whom the location will be important. Will the location be a major factor for… As you can see, a fully informed decision involves a fairly complex matrix of issues. Determine your priorities, keep an open mind about your options, and do your research to make one of the most important decisions you’ll make for your business.
