Ready to Expand? How to Choose Your New Business Location
Choosing a new business location is not something that can be done on a whim. It takes planning and research and a willingness to thoroughly vet all of your options. With these helpful tips, you can identify the best place to locate your expanding business.
Identify Your Business Type
The location you choose will depend on the type of business you operate. Business parks, shopping malls, strip malls, professional buildings, and others are all designed to meet the specific needs of various businesses. If you’re expanding from online only to online and brick-and-mortar, for example, your needs will be much different than if you’re an accountant looking to grow your firm and bring in new clients.
There are four common types of businesses, but more creative options, like coworking spaces, are popping up all the time. Be on alert for these and other location types that would meet your specific needs.
Home-based: If you work from home but need more space, you might consider moving to a new home or adding on to your existing home.
Retail: Don’t limit yourself to downtown storefronts and strip malls. You can also find retail space in airports, free-standing buildings, and special event kiosks.
Mobile: It used to be that the only businesses that moved around were circuses and festival vendors. But today with mobile card readers, your restaurant can add a roaming food truck location and your used book store can open a new pop-up shop near the beach.
Commercial: Commercial business spaces offer flexibility for even more growth down the road, but are typically best for businesses that don’t rely on heavy consumer traffic.
Industrial: If you operate a manufacturing or distribution business, you’ll have special needs and will likely have limited choices when it comes to opening a new location. Industrial sites are needed for companies that require large amounts of warehousing space, for companies that need access to major transportation routes, or for companies that may produce pollutants as part of the manufacturing process.
In almost every case, where you can locate your business will be dictated by local zoning ordinances in your community. Don’t sign on the dotted line until you’re sure it’s legal for you to operate your business in your desired location.
Make a List of Your Basic Needs
In addition to overall building type and zoning regulations, there are a few finer points you need to consider. Add any of these that apply to your checklist:
- A location that is consistent with your business’s brand. In other words, you probably wouldn’t want to plant your new office supply location right in the middle of a high-end, boutique shopping district.
- A location that makes it easy for you to connect with your vendors and suppliers. Which location makes it easier and cheaper for you to get the raw goods you need to operate?
- A safe location. This is especially important for businesses with inventory that may be at a higher risk for burglary and theft.
- A location that’s not saturated by your competition. If at all possible, you’ll want to expand to a location where the other businesses on the block are complementary.
- A location with sufficient parking. Will your customers be willing to pay for parking? Or do you need a location that provides adequate parking spaces for employees and customers?
Make Sure the Property is Within Your Budget
Of course, one of your major priorities will be finding a location that fits within your company’s budget. However, that’s not all you need to examine when it comes to money. There often other location-specific costs to consider beyond the purchase price or monthly rent. Almost every location has different hidden costs that you need to account for: taxes, renovations, utility upgrades, minimum wage requirements, and economic incentives. Even mobile business need to consider the cost of permits and vehicle licensing when choosing a new business location.
Considering all the above will help you make a well-educated choice for your next business location. Before committing to anything, be sure to speak with other business owners in the area to make sure they’re happy with the location. Although you can never predict if a new location will be successful, you can do as much research as possible beforehand to ensure it is the best available fit for your growing business.
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