Better Business Bureau® Serving Northern Colorado and the Small Business Association offer these tips for choosing the right location for you and your business:
Determine Your Needs
Most businesses choose a location that provides exposure to customers. Additionally, there are less obvious factors and needs to consider, for example:
Brand Image – Is the location consistent with the image you want to project?
Competition – Are the businesses around you complementary or competing?
Local Labor Market – Does the area have potential employees? What will their commute be like?
Plan for Future Growth – Will the site allow for expansion of both employees and facilities?
Proximity to Suppliers – Will your vendors be able to find you easily?.
Safety – Will employees feel safe alone in the building or walking to their vehicles?
Zoning Regulations– Is the location zoned for your type of business?
Evaluate Your Finances
Besides determining what you can afford, you will need to be aware of other financial considerations when looking for property:
Hidden Costs – Very few office, commercial and industrial spaces are business ready. Include costs like renovation, decorating, IT system upgrades and so on.
Taxes – What are the income and sales tax rates for your state? What about property taxes? Could you pay less in taxes by locating your business across a nearby state line?
Minimum Wage – While the federal minimum wage is $7.25 per hour, many states have a higher minimum. View the Department of Labor’s list of minimum wage rates by state.
Government Economic Incentives – Your business location can determine whether you qualify for government economic business programs, such as state-specific small business loans and other financial incentives.
Is the Area Business Friendly?
Understanding laws and regulations imposed on businesses in a particular location is essential. As you look to grow your business, it can be advantageous to work with a small business specialist or counselor. Check what programs and support your state government and local community offer to small businesses. Many states offer online tools to help small business owners start up and succeed. Local community resources such as SBA Offices, Small Business Development Centers, Women’s Business Centers, Chambers of Commerce and economic development organization and other government-funded programs specifically support small businesses.
Start With Trust. For more small business tips, visit bbb.org.