Most common reasons an entrepreneur will pick a business location is because they noticed an announcement or a vacancy sign.
Depending on your business, picking the wrong location may not be the entire cause for business failure, but it can contribute to the cause if your potential customers cannot reach you.
In situations where a service business goes to the customer, you must consider the cost of traveling from location to location. If you are a home-based business, you may need an address that does not identify your business as “home-based.” If customers must receive service from your home-based office, you must consider several matters including but not limited to environmental factors, parking (which may be regulated by county/city rules), family issues, safety factors for both you the business owner and the customer, and insurance issues.
Below, you must begin to answer these questions, so you get a better understanding of your location requirements.
- Are your customers visiting you or you are visiting them?
- Will the area selected be convenient for you and your customers?
- Are customers parking available? Who pays for Parking?
- Will the location have pedestrian and automobile traffic ?
- Is the proposed location is zoned for the type of business you are proposing (check with county/city regulators)?
- Is this location accessible to inbound and/or outbound shippers?
- If applicable, with leasing or renting will you and/or customers have after hours access to use of the elevators and/or extended hours for parking privileges?
- Will the location allow for or support your business hours?
- Are the surrounding businesses complementary or compatible to your business?
- Is the location you’ve selected compatible with the image of the business?
- How does the surrounding trade area provide advantages to your business?
- Provide a general floor plan of the proposed business location even if it is a home-based business. Include the size and dimensions of how each area will be used.
- Information about when the proposed business location was last inspected by the officials such as the Fire Marshall or a general inspector.
- What is the square footage rent costs (and/or monthly costs)? Will there be a lease agreement? What will that look like? Options?
- Will any tenant improvements be needed? Who will cover these construction costs?
- What does the general infrastructure look like (i.e. quality of roads, sewer, water, power, etc.)?
- Will there be a sufficient labor pool to pull from should employees be needed?
- If your business expanse in the future, is their room to grow at this location?