Have you outgrown you current business space? If so, you should give serious consideration to location. How do you go about choosing a good business location? While there are many issues to consider when you are looking for space to house your business, make sure you ask yourself these questions:
- Is location important for the success of my business?
- What type of location is best for my business?
- How much rent can I afford?
- Is my proposed location appropriate for what I plan to do there?
- Will I be able to retain and/or attract quality employees at the proposed location?
For some businesses, location is everything. But for other enterprises, location may be much less important than finding affordable rental space. For instance, if you are a service business that does all your work at your customers' locations, such as a roofer or a plumber, or a business that has little contact with the public, such as a wholesaler or Internet-based business, location might be irrelevant.
The key to picking a profitable location is determining the factors that will increase customer volume for your business. Spend some time figuring out the habits of the customers you want to attract, and then choose a location that fits. Also, ask yourself:
- Will more customers come if I locate near other similar businesses?
- Will the reputation of the neighborhood or even of a particular building help draw customers?
- Will customers drive? If so, where will they park?
One major concern when looking for commercial space to lease is finding a place that you can afford. You should know, based on your financial projection, how much rent you would be able to pay each month. Do some homework. Research average rental costs in your area to make sure the amount you budgeted for rent makes sense given the cost of commercial space in your area. Brokers and agents can be good sources of information on rental costs in various neighborhoods. They will generally give you an average figure for the cost of commercial space per square foot, per year, in a given area. Once you have this figure, you can compare it to the costs of other spaces you are considering.
Keep in mind that the location you choose needs to be legally acceptable for whatever you plan to do there. A certain spot may be good for business, but if it is not zoned for what you plan to do, you could be asking for legal troubles. You should never sign a lease without knowing whether you will be permitted to operate your business in that space. If your zoning board has a problem with any of your business activities, and it is not willing to work out a way to accommodate your business, you may want to look elsewhere.
