Finding a Location for Your Business Success
the keys to finding a business location
Your Location ~ Your Success
Moneymatic: Starting Your Own Business
Winning Style (Part 2)
Picking a Location Before You Start Your Small Business
What’s in this article:
- · Making your Dream a Reality
- · Picking a location
- · People who can help
- · How to negotiate a lease or a purchase
- · The Power of Location Know How
You have always wanted your own business. You are bubbling over with enthusiasm at the prospect of your new business. You can envision your success. And success will be yours with the right decisions and smart forethought that goes into the details that make up owning a small business. One key detail, for example, is choosing where your business will be situated. In picking a spot for your venture, it is important to follow the 3 rules of real estate… location, location, location.
Your choice of location depends very much on the needs of your customers. If your small business needs walk in patrons because you are starting a retail store, or a restaurant, as an example, you need visibility and easy access for your customers to walk in. If your business involves phone or internet access to your customers, office space in a building or in your home office may suit your business well. If you are starting a manufacturing or distribution company, industrial space will serve you well.
So the first thought of your small business location, you must consider your customer’s needs and how you can best serve them at the most reasonable cost per square foot in your location.
Ask yourself these questions:
- do you need customers to walk in, or will make appointments?
- do trucks need access to make deliveries or pick ups?
- will your facility make noise?
- do you need to store products and how much storage space do you need?
- do you know what the local regulations are, fire codes, zoning laws?
- do you need to meet safety and health requirements?
- what are the ordinances, and laws in this location?
- what about your competition, where are they located?
- does your location give you advantages to your competition?
- are there environmental impacts from your business?
- is there room to expand?
- how long do you anticipate this location satisfying your small business needs?
- do you use chemicals?
- does your business involve food, sanitary requirements, FDA, and health dept rules?
- how safe is the area, if you work late, or store products?
- what upgrades and improvements might the location need?
- do you need parking for customers?
- do you need a waiting room?
- do you need space for large equipment?
- do you need to do major repairs such as roof, electrical, plumbing?
- how old is the building?
- what draws people to the area?
- estimate the cost of running your business from this location
Expand this list, by thinking of all the specifics of your business.
Know as much as you can about your customers, and what their needs are. There are many reasons to know who your customers are, and one of the reasons has to do with where you will be setting up your small business. You want the research you find out about your customers to match what your location can offer them. Try to understand the community, and how you can best fit in. Research your competition, and make sure your location offers you some advantage over the competition, so you can maximize your profits. This will help you understand your competitive edge and your ability to develop a reputable name in the community.
Customers need as little obstacles as possible to get to your business, so look at your location from all angles to figure how you can best serve the people who will be buying from you.
Before you pick your location, spend time to watch traffic patterns (cars and pedestrian), and the “lifestyle” of the community, so that you can get an idea of the ease and obstacles to having your business in this spot. Where is your competitor located? It is quite advantageous to be as close to your competitor as possible, their customers maybe your customers. If your product and service is good, don’t be afraid of your competitor, it will keep focused, make you sharper, make your business better all the way around.
When you think you have found the perfect place, it is time to negotiate a lease or buy the property. It is best to have a lawyer negotiate the contract for you. They will know the right questions to ask the owner of the property and to protect your interests in the agreement. They will also look over the contract with a “fine tooth” comb so that the contract works in your favor. Commercial (business) leases are much more intricate than other leases. A common tendency is to concentrate on the monthly payments of the building. There are other expenses to be aware of including: who will pay repairs or renovation costs. These are things that can be negotiated in the agreement. The length of the lease is very important also, because a short term lease could force you to renegotiate at a higher rate or be forced to relocate or close your business for this reason. So a longer term lease is to your advantage, even if the monthly rate is higher than a short term arrangement.
It is a good idea to work on a business strategy that overestimates your expected costs, because you will be in better shape if your business costs are lower than you expect.
Some start up costs to expect to get your location set up for your new business may include
- · real estate broker costs
- · attorney fees
- · architectural costs
- · engineering fees
- · zoning and planning expenses
It is very important to do the necessary research. The time and energy you put in to looking at your business location will be returned to you in faster and greater profits. You can have the greatest product or service, your profits depend on getting people to buy from you. An excellent spot to locate your business will get those customers buying from you. This is why your location is one of the most important decisions you can take towards making your business successful.
Picking a Location Before You Start Your Small Business
Picking the location of your business should be one of your first thoughts. One of the keys to your success is considering your customer’s needs and how you can best serve them at the most reasonable cost per square foot in your location.
Customers need as little obstacles as possible to get to your business, so look at your location from all angles to figure how you can best serve the people who will be buying from you. Your successful business is a location away!
more business information
- Moneymatic: Starting Your Own Business Winning Style (Part I)
It is the all American Dream to own a small business and see it grow. Believe it or not, there are a lot of people who want you to succeed and are counting on you to succeed at running your small business because: