Choosing The Right Location For Your Small Business

Choosing The Right Location For Your Small BusinessAlthough financial planning, inventory management and product research are all important aspects to consider when opening a small business, location may be the most important choice that you can make.  The truth is the most amazing business can fail simply due to being established in the wrong location.

Planning out your businesses location is absolutely essential.  Here are some details to consider when selecting the perfect destination spot for your entrepreneurial endeavor.

1. Competitors

Are the surrounding businesses competitive or complementary to your type of small business?  While you want to stay away from companies offering the same type of product as you, strategically placing yourself next to stores that will increase your foot traffic may be a plus.

2. Local Labor Market

What type of employees do you wish to employ?  Do they need to be highly educated professionals or college students?  Make sure that you are in an area where you can hire the type of people that you want working for you.

3. Future Growth

If you have found an area that you love, make sure that there is room to grow.  This detail is vital for certain businesses that have a goal of expanding within the recent future.  You don’t want to get settled in and build a client-base only to move due to lack of space.

4. Demographics

Think about whether the area you are in is consistent with the image you want to portray to your customers.  Are consumers able to access your property easily?  Whether you primarily rely on foot traffic or drive-by traffic, find an area that coincides with your consumer needs.

5. Financial Resources

There are many financial details to consider before construction starts.  Besides the obvious task of determining just what you can afford, you’ll want to examine the following business banking options:

  • Hidden Costs:  Very few spaces are move-in ready for your specific type of business and may require work done to accommodate your needs.  When looking at a space, think of just how much work is needed to get your business ready to open their doors.
  • Taxes:  Not only are there state sales and income tax rates, but there are also property taxes to consider.
  • Minimum Wage:  Although the federal government mandates an hourly minimum wage of $7.25, you’ll find that they differ by state.
  • Small Business Loan:  If you have applied for a small business loan, most San Diego banks will require a business plan outlining your location and details of operation.

6. Zoning Regulations

Zoning regulations determine which type of businesses is allowed in certain locations.  Check with your local planning agency to find out if the property of interest is properly zoned for your type of small business.

7. Safety

Crime rate is another important detail to consider.  How safe is your store front when you leave the building at night?  Is there security available?  Taking the proper safety precautions can save you a substantial amount of money down the road.

Opening a small business can be exciting, frustrating and overwhelming at the same time.  With the proper planning, organization and location, you can increase the chances that your business will be successful.

Charlie McCartney of The Marketing Robot. Follow him on Twitter @robthemarketer or read his blog for more information on marketing and small business best practices.

Editorial Team
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