So you have thought of launching a new business and thinking of where to find the perfect place to make it your home for your business, and I congratulate you on your right decision. Many entrepreneurs believe the most important factor at the forefront is always a location and they are right. Any choice of finding the perfect location bears a significant amount of value in terms of where the property lies and the cost of choosing is according to the choice of place.
Many small business fail due to their improper choice of location just because they are in rush to launch their business and without careful consideration of important factors that affect later on the operational cash flows of the company. Before you choose plan thoroughly to avoid any unfavourable circumstances in the future.
Choice of location largely depends on what type of business you are in and what products you offer and where your customers are located. Location can be at Home/ Retail Malls/ Commercial or Industrial units and also can be at mobile. It all depends on what business you are in how you expect to make it grow in your choice of location.
Answering few questions may help you in deciding a good choice before you start up your new business.
- Does your new location provides enough security features for your prospective clients whilst when women’s want to shop alone? Is the site located near to your existing and new clients?
- Does your choice of location have efficient and economic labor resources to operate the business? Or are you going to run taking employees from your first organisation? Or is it just that you are making it a family business?
- Does it provide you with enough storage space and you are happy to bear additional insurance cost?
- Consider your finish out requirements once you choose the perfect location to make it start. Many business fails before they even start because they run out of cash in refurbishing requirements.
- Search your market and analysis your consumer demographics. Establishing a retail store in a wholesale industrial unit just because you want to avoid transportation cost can be of some assistance but on the other hand you may be losing lot of walk-in customers. It’s always good to make your business visible in the eyes of customers. It may also happen that you may not be able to handle the cost of luxury space. Check your monthly and annual cost estimates and you may choose accordingly.
- Are the suppliers easily accessible for your new business? or are they located too far in case you might be interested in saving distribution and transportation cost.
- Sometimes it’s good to operate alongside your competitors to build your sales and to grab more walk-in customers and to know their competitors specialized products. Many retail outlets are open in an area where they have found the ratio of walking customers increases as compare to locating in an isolated remote area.
- Does it cover room for expansion in case the business grows in future date?
- Make yourself aware of local authority restrictions and requirements and your responsibilities to meet those obligations before you choose a location eg. Opening and Closing times, tax implications or installing your signage and other health and safety issues to cover.
Always take professional and legal help, if you are unsure about choosing a perfect location for your new business. I hope and wish you your location will make you instead of breaking you , so It’s always good to pre-plan accordingly.
-Digvijay Thapa
( The writer doesn't take any responsibility and liability of using his blog contents to implementation by anybody in their business, in doing so by any entrepreneur will be at their own decision and will be doing by their own test and analysis results and writer doesn't have any involvement and liability in their action)
