Why is it important to choose a business location?
Choosing a business location is the most important part of starting any business. Most of the time location decides the growth of your business because many components involve in making your business successful. A leading business location requires:
- Demographics
- Precise research and planning
- Scope and competition
- Budget
- Supply Chain
- Understanding the laws and taxes of the states
Demographics
There are two important facts about demographics: know your customers and the importance of their proximity to your location. Demographics help you to target your market. You may need to find the answers to following questions:
• What is the ratio of potential customers in local population?
• What is the economy of the local population?
Precise Research and Planning
A precise research and planning before setting up a new business gives you various benefits and gives you a clear vision to mold your business future, secure funding, executing a course of action, managing a cash flow and a strategic exit.
Competition
The next one of the most important aspects of choosing a location to set up a new business is “the competitors”. Do a market analysis to know your competitor’s strength and strategies. Any successful business chain prepares a feasibility report before opening its franchise in any area. Observing the competitors helps you in preparing your business strategies to compete them.
Proximity to other Businesses and Services
Have a look at the service and the management of other business falling in your category. It is possible that some strategies sound good and help you establish a better business. Look at the ways they generate their business, how they grow their customers. But remember, it depends on the location. If you have a business site surrounding a population with low economy may change your advertisement strategies as compared to the location with a strong economic base.
Understanding the laws and taxes of the states
Zoning regulations- Contact your local planning agency of the state to know whether you can choose that location for a specified business or not. Ensure that property meets the zoning requirements.
Taxes- Check the income and sales tax rates of the state where you want to start your business. Get information about the property tax from the county or states’ local office.
Additional tips before choosing a location for business
· Infrastructure that support everyday activities, phone lines, roads, internet etc.
· Efficient transport network
· Customer convenience
· Parking
